Abstract
This study investigates the impact of policy and institutional strength for sustainability, and income growth (GDP growth) on renewable energy adoption in the United States, employing time-series data and the Quantile Autoregressive Distributed Lag (QARDL) model. Solar energy adoption serves as a key proxy for renewable energy transitioning, while the study also tests the energy ladder hypothesis, which posits that rising incomes lead to a shift from traditional energy sources to cleaner, modern options. The results reveal homogenous positive relationships between policy and institutional strength, income growth and renewable energy adoption. Strong policy measures, such as Renewable Portfolio Standards (RPS) and federal tax incentives, significantly enhance renewable technology uptake, particularly in higher adoption quantiles. Also, institutional quality ensures effective implementation of these policies by fostering regulatory consistency and efficient resource allocation. Income growth further supports this transition, with higher incomes enabling investments in clean energy technologies and driving a shift away from fossil fuels, validating the energy ladder hypothesis. Amid contemporary challenges like rising energy demand, fossil fuel price volatility, and the urgency of achieving carbon neutrality, the findings emphasize the need for targeted actions to accelerate the adoption of renewable energy. Expanding financial incentives, strengthening institutional frameworks, and investing in workforce development are crucial steps. Furthermore, this addresses energy equity through programs targeting underserved communities and promoting resilience.
Presenters
Akinwale IsholaStudent, Master of Science Degree - Sustainability, Eastern Illinois University, Illinois, United States
Details
Presentation Type
Paper Presentation in a Themed Session
Theme
2025 Special Focus—Sustainable Development for a Dynamic Planet: Lessons, Priorities, and Solutions
KEYWORDS
Renewable Energy, Sustainability GDP, Renewable Portfolio Standards
