IDEAS home Printed from https://ideas.repec.org/h/nbr/nberch/14881.html
   My bibliography  Save this book chapter

Do Red States Have a Comparative Advantage in Generating Green Power?

In: Environmental and Energy Policy and the Economy, volume 5

Author

Listed:
  • Robert Huang
  • Matthew E. Kahn

Abstract

The passage of the 2022 Inflation Reduction Act will lead to a significant increase in US wind and solar power investment. Renewable power generation requires more land than fossil fuel fired power generation. The land that will be allocated to renewables depends on several demand-side and supply-side factors such as the land’s renewable power potential, cost of acquisition, proximity to final power consumers, and local land use regulations. We find that Republican areas are more likely to issue interconnection permits than progressive areas. We present evidence that rural Republican areas have a cost advantage in generating wind power; however, Democratic areas have sited more solar capacity. We use our statistical model to identify Republican congressional districts that have the potential to scale up green power production.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Robert Huang & Matthew E. Kahn, 2023. "Do Red States Have a Comparative Advantage in Generating Green Power?," NBER Chapters, in: Environmental and Energy Policy and the Economy, volume 5, pages 200-238, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberch:14881
    as

    Download full text from publisher

    File URL: http://www.nber.org/chapters/c14881.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Matthew Kotchen & Michael Moore, 2008. "Conservation: From Voluntary Restraint to a Voluntary Price Premium," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 40(2), pages 195-215, June.
    2. Michael I. Cragg & Yuyu Zhou & Kevin Gurney & Matthew E. Kahn, 2013. "Carbon Geography: The Political Economy Of Congressional Support For Legislation Intended To Mitigate Greenhouse Gas Production," Economic Inquiry, Western Economic Association International, vol. 51(2), pages 1640-1650, April.
    3. van Zalk, John & Behrens, Paul, 2018. "The spatial extent of renewable and non-renewable power generation: A review and meta-analysis of power densities and their application in the U.S," Energy Policy, Elsevier, vol. 123(C), pages 83-91.
    4. Marshall Burke & Kyle Emerick, 2016. "Adaptation to Climate Change: Evidence from US Agriculture," American Economic Journal: Economic Policy, American Economic Association, vol. 8(3), pages 106-140, August.
    5. Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2002. "The Regulation of Entry," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(1), pages 1-37.
    6. Carley, Sanya, 2009. "State renewable energy electricity policies: An empirical evaluation of effectiveness," Energy Policy, Elsevier, vol. 37(8), pages 3071-3081, August.
    7. Peltzman, Sam, 1984. "Constituent Interest and Congressional Voting," Journal of Law and Economics, University of Chicago Press, vol. 27(1), pages 181-210, April.
    8. Rapson, David, 2014. "Durable goods and long-run electricity demand: Evidence from air conditioner purchase behavior," Journal of Environmental Economics and Management, Elsevier, vol. 68(1), pages 141-160.
    9. Brown, Jason P. & Pender, John & Wiser, Ryan & Lantz, Eric & Hoen, Ben, 2012. "Ex post analysis of economic impacts from wind power development in U.S. counties," Energy Economics, Elsevier, vol. 34(6), pages 1743-1754.
    10. Alexander W. Bartik & Janet Currie & Michael Greenstone & Christopher R. Knittel, 2019. "The Local Economic and Welfare Consequences of Hydraulic Fracturing," American Economic Journal: Applied Economics, American Economic Association, vol. 11(4), pages 105-155, October.
    11. H. Hanson, Gordon, 2005. "Market potential, increasing returns and geographic concentration," Journal of International Economics, Elsevier, vol. 67(1), pages 1-24, September.
    12. Leah C. Stokes, 2016. "Electoral Backlash against Climate Policy: A Natural Experiment on Retrospective Voting and Local Resistance to Public Policy," American Journal of Political Science, John Wiley & Sons, vol. 60(4), pages 958-974, October.
    13. Susskind, Lawrence & Chun, Jungwoo & Gant, Alexander & Hodgkins, Chelsea & Cohen, Jessica & Lohmar, Sarah, 2022. "Sources of opposition to renewable energy projects in the United States," Energy Policy, Elsevier, vol. 165(C).
    14. Robert A. Margo, 2000. "Wages in California during the Gold Rush," NBER Chapters, in: Wages and Labor Markets in the United States, 1820-1860, pages 119-141, National Bureau of Economic Research, Inc.
    15. Gustafson, Abel & Goldberg, Matthew H. & Kotcher, John E. & Rosenthal, Seth A. & Maibach, Edward W. & Ballew, Matthew T. & Leiserowitz, Anthony, 2020. "Republicans and Democrats differ in why they support renewable energy," Energy Policy, Elsevier, vol. 141(C).
    16. Rappaport, Jordan & Sachs, Jeffrey D, 2003. "The United States as a Coastal Nation," Journal of Economic Growth, Springer, vol. 8(1), pages 5-46, March.
    17. Carrington, William J, 1996. "The Alaskan Labor Market during the Pipeline Era," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 186-218, February.
    18. Thomas J. Holmes, 1998. "The Effect of State Policies on the Location of Manufacturing: Evidence from State Borders," Journal of Political Economy, University of Chicago Press, vol. 106(4), pages 667-705, August.
    19. Michaël Aklin & Johannes Urpelainen, 2013. "Political Competition, Path Dependence, and the Strategy of Sustainable Energy Transitions," American Journal of Political Science, John Wiley & Sons, vol. 57(3), pages 643-658, July.
    20. Lucas W. Davis & Alan Fuchs & Paul Gertler, 2014. "Cash for Coolers: Evaluating a Large-Scale Appliance Replacement Program in Mexico," American Economic Journal: Economic Policy, American Economic Association, vol. 6(4), pages 207-238, November.
    21. Gyourko, Joseph & Hartley, Jonathan S. & Krimmel, Jacob, 2021. "The local residential land use regulatory environment across U.S. housing markets: Evidence from a new Wharton index," Journal of Urban Economics, Elsevier, vol. 124(C).
    22. James Feyrer & Erin T. Mansur & Bruce Sacerdote, 2017. "Geographic Dispersion of Economic Shocks: Evidence from the Fracking Revolution," American Economic Review, American Economic Association, vol. 107(4), pages 1313-1334, April.
    23. Kahn, Matthew E., 2011. "Do liberal cities limit new housing development? Evidence from California," Journal of Urban Economics, Elsevier, vol. 69(2), pages 223-228, March.
    24. Fthenakis, Vasilis & Kim, Hyung Chul, 2009. "Land use and electricity generation: A life-cycle analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(6-7), pages 1465-1474, August.
    25. Casey B. Mulligan & Andrei Shleifer, 2005. "The Extent of the Market and the Supply of Regulation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(4), pages 1445-1473.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kahn, Matthew E. & Walsh, Randall, 2015. "Cities and the Environment," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 405-465, Elsevier.
    2. Ferdinando Monte & Stephen J. Redding & Esteban Rossi-Hansberg, 2018. "Commuting, Migration, and Local Employment Elasticities," American Economic Review, American Economic Association, vol. 108(12), pages 3855-3890, December.
    3. David A. Green & René Morissette & Ben M. Sand & Iain Snoddy, 2019. "Economy-Wide Spillovers from Booms: Long-Distance Commuting and the Spread of Wage Effects," Journal of Labor Economics, University of Chicago Press, vol. 37(S2), pages 643-687.
    4. Eyer, Jonathan & Kahn, Matthew E., 2020. "Prolonging coal’s sunset: Local demand for local supply," Regional Science and Urban Economics, Elsevier, vol. 81(C).
    5. Breinlich, Holger & Ottaviano, Gianmarco I.P. & Temple, Jonathan R.W., 2014. "Regional Growth and Regional Decline," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 4, pages 683-779, Elsevier.
    6. Edward L. Glaeser & Joshua D. Gottlieb, 2009. "The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States," Journal of Economic Literature, American Economic Association, vol. 47(4), pages 983-1028, December.
    7. Matthew J. Holian & Matthew E. Kahn, 2014. "Household Demand for Low Carbon Public Policies: Evidence from California," NBER Working Papers 19965, National Bureau of Economic Research, Inc.
    8. Mosquera, Roberto, 2022. "The long-term effect of resource booms on human capital," Labour Economics, Elsevier, vol. 74(C).
    9. repec:esx:essedp:729 is not listed on IDEAS
    10. Guy Michaels, 2011. "The Long Term Consequences of Resource‐Based Specialisation," Economic Journal, Royal Economic Society, vol. 121(551), pages 31-57, March.
    11. Ioannidis, Romanos & Koutsoyiannis, Demetris, 2020. "A review of land use, visibility and public perception of renewable energy in the context of landscape impact," Applied Energy, Elsevier, vol. 276(C).
    12. Stephen J. Redding, 2010. "The Empirics Of New Economic Geography," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 297-311, February.
    13. Emblemsvåg, Jan, 2022. "Wind energy is not sustainable when balanced by fossil energy," Applied Energy, Elsevier, vol. 305(C).
    14. Schumacher, Kim & Yang, Zhuoxiang, 2018. "The determinants of wind energy growth in the United States: Drivers and barriers to state-level development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 97(C), pages 1-13.
    15. Lemay, Amélie C. & Wagner, Sigurd & Rand, Barry P., 2023. "Current status and future potential of rooftop solar adoption in the United States," Energy Policy, Elsevier, vol. 177(C).
    16. Djankov, Simeon & Ramalho, Rita, 2009. "Employment laws in developing countries," Journal of Comparative Economics, Elsevier, vol. 37(1), pages 3-13, March.
    17. Paul J. Gertler & Orie Shelef & Catherine D. Wolfram & Alan Fuchs, 2016. "The Demand for Energy-Using Assets among the World's Rising Middle Classes," American Economic Review, American Economic Association, vol. 106(6), pages 1366-1401, June.
    18. Timothy Besley & Robin Burgess, 2004. "Can Labor Regulation Hinder Economic Performance? Evidence from India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 91-134.
    19. Tedi Skiti, 2020. "Institutional entry barriers and spatial technology diffusion: Evidence from the broadband industry," Strategic Management Journal, Wiley Blackwell, vol. 41(7), pages 1336-1361, July.
    20. Lade, Gabriel E. & Rudik, Ivan, 2020. "Costs of inefficient regulation: Evidence from the Bakken," Journal of Environmental Economics and Management, Elsevier, vol. 102(C).
    21. Kim, Ho Yeon, 2012. "Shrinking population and the urban hierarchy," IDE Discussion Papers 360, Institute of Developing Economies, Japan External Trade Organization(JETRO).

    More about this item

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberch:14881. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.