The political economy of solar initiatives in the Sunshine state

Ritika Khurana, Levan Elbakidze and Joshua Hall

Applied Economics Letters, 2021, vol. 28, issue 9, 717-720

Abstract: This study empirically examines the outcomes of two solar energy amendments that were on the ballot in Florida in 2016. One amendment exempts solar energy devices from ad valorem taxation, effectively decreasing the cost of solar energy. The second amendment reaffirms the right of property owners to instal or lease solar photovoltaic panels for their personal use but allows for termination of net metering. Our results show that, depending on the amendment, per capita income and pro-environmental ideology are positively associated with voter support for pro-solar policies. County shares of employment in construction, agriculture and forestry, retail, transportation, warehousing and utilities are negatively associated with support of pro-solar policies. The policy implications of our findings for citizens and policymakers interested in passing pro-solar policies through referenda are straightforward. To the extent possible, amendments should be structured so as to ensure high voter turnout and engagement among voters most likely to be in favour of the solar initiatives. Structuring amendments to minimize any negative short-term effects on industries where solar energy may be viewed unfavourably is also likely to help move pro-solar initiatives closer to passage.

Date: 2021
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DOI: 10.1080/13504851.2020.1771269

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