Rare-earth halides are shown to be a replacement for scandium halides in mercury-free discharge arc lamps if modifications are made to the prior art lamp design and operating temperatures. The inventive chemical compositions of the discharge medium provide enhanced color rendition index values. In addition, it has been unexpectedly determined that during the operation of the discharge lamps, the rare earth iodides do not react significantly with the fused silica arc tube. Equally as significant, any free iodine, which is so formed, has minimal impact on the efficacy of the lamp compared to the conventional scandium iodide lamps. Therefore, the rare earth iodide-containing lamps provide longer lifetime with superior illumination characteristics than conventional discharge lamps.