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Effects of state and federal policy on renewable electricity generation capacity in the United States

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  • Mullen, Jeffrey D.
  • Dong, Luren

Abstract

Multiple studies have examined the impact of state-level renewable portfolio standards (RPS) on renewable electricity generating capacity. Two of the most widely cited of these papers (Yin and Powers, 2010; Shrimali et al., 2015) both conclude that as an RPS mandates higher shares of renewable generating capacity within a state, utilities respond by increasing the renewable electricity generating capacity. When we update the data for those models, we find that conclusion is not robust. We also modify those models and extend the datasets out to 2018, and in every model-permutation fail to corroborate the original conclusions. Finally, we examine the impact of the 2009 American Reinvestment and Recovery Act, and find it has had a significant, positive impact on renewable electricity generating capacity. We conclude that state-level RPS are not a sufficient substitute for federal action to reduce greenhouse gas emissions from the electricity sector. Federal leadership matters. This paper also demonstrates the importance of investigating the robustness of previous results to data refinements.

Suggested Citation

  • Mullen, Jeffrey D. & Dong, Luren, 2022. "Effects of state and federal policy on renewable electricity generation capacity in the United States," Energy Economics, Elsevier, vol. 105(C).
    • Handle: RePEc:eee:eneeco:v:105:y:2022:i:c:s014098832100606x
    DOI: 10.1016/j.eneco.2021.105764
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    References listed on IDEAS

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    1. Carley, Sanya, 2009. "State renewable energy electricity policies: An empirical evaluation of effectiveness," Energy Policy, Elsevier, vol. 37(8), pages 3071-3081, August.
    2. Gireesh Shrimali, Gabriel Chan, Steffen Jenner, Felix Groba and Joe Indvik, 2015. "Evaluating Renewable Portfolio Standards for In-State Renewable Deployment: Accounting for Policy Heterogeneity," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).
    3. Yin, Haitao & Powers, Nicholas, 2010. "Do state renewable portfolio standards promote in-state renewable generation[glottal stop]," Energy Policy, Elsevier, vol. 38(2), pages 1140-1149, February.
    4. Delmas, Magali A. & Montes-Sancho, Maria J., 2011. "U.S. state policies for renewable energy: Context and effectiveness," Energy Policy, Elsevier, vol. 39(5), pages 2273-2288, May.
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    Citations

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    Cited by:

    1. Liu, Ying & Feng, Chao, 2023. "Promoting renewable energy through national energy legislation," Energy Economics, Elsevier, vol. 118(C).
    2. Li, Li & Wang, Shuai & Wu, Jiaqi & Sun, Zhenqing, 2024. "Exploring the efficacy of renewable energy support policies in uncertain environments: A real options analysis," Energy Economics, Elsevier, vol. 132(C).
    3. Li, Yi & Liu, Tianya & Xu, Jinpeng, 2023. "Analyzing the economic, social, and technological determinants of renewable and nonrenewable electricity production in China: Findings from time series models," Energy, Elsevier, vol. 282(C).

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    More about this item

    Keywords

    Renewable energy; Renewable portfolio standards; Energy policy; American reinvestment and recovery act;
    All these keywords.

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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