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Why Do States Adopt Renewable Portfolio Standards?: An Empirical Investigation

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  • Thomas P. Lyon
  • Haitao Yin

Abstract

Renewable portfolio standards (RPSs) for electricity generation are politically popular in many U.S. states although economic analysis suggests they are not first-best policies. We present an empirical analysis of the political and economic factors that drive state governments to adopt an RPS, and the factors that lead to the inclusion of in-state requirements given the adoption of an RPS. Although advocates claim an RPS will stimulate job growth, we find that states with high unemployment rates are slower to adopt an RPS. Local environmental conditions and preferences have no significant effect on the timing of adoption. Overall, RPS adoption seems to be driven more by political ideology and private interests than by local environmental and employment benefits, raising questions as to when environmental federalism serves the public interest.

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Bibliographic Info

Article provided by International Association for Energy Economics in its journal The Energy Journal.

Volume (Year): Volume 31 (2010)
Issue (Month): Number 3 ()
Pages: 133-158

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Handle: RePEc:aen:journl:2010v31-03-a07

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Cited by:
  1. Stokes, Leah C., 2013. "The politics of renewable energy policies: The case of feed-in tariffs in Ontario, Canada," Energy Policy, Elsevier, vol. 56(C), pages 490-500.
  2. Fischer, Carolyn & Preonas, Louis, 2010. "Combining Policies for Renewable Energy: Is the Whole Less than the Sum of Its Parts?," Discussion Papers dp-10-19, Resources For the Future.
  3. Schelly, Chelsea, 2014. "Implementing renewable energy portfolio standards: The good, the bad, and the ugly in a two state comparison," Energy Policy, Elsevier, vol. 67(C), pages 543-551.
  4. Timothy J. Considine & Edward J. M. Manderson, 2013. "The Cost of Solar-Centric Renewable Portfolio Standards," The School of Economics Discussion Paper Series 1323, Economics, The University of Manchester.
  5. Kathryn Harrison, 2013. "Federalism and Climate Policy Innovation: A Critical Reassessment," Canadian Public Policy, University of Toronto Press, vol. 39(s2), pages 95-108, August.
  6. 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.
  7. Johannes Urpelainen, 2012. "How do electoral competition and special interests shape the stringency of renewable energy standards?," Environmental Economics and Policy Studies, Society for Environmental Economics and Policy Studies - SEEPS, vol. 14(1), pages 23-34, January.
  8. Sánchez-Braza, Antonio & Pablo-Romero, María del P., 2014. "Evaluation of property tax bonus to promote solar thermal systems in Andalusia (Spain)," Energy Policy, Elsevier, vol. 67(C), pages 832-843.
  9. Du, Xiaodong & Carriquiry, Miguel A., 2013. "Spatiotemporal analysis of ethanol market penetration," Energy Economics, Elsevier, vol. 38(C), pages 128-135.
  10. Gireesh Shrimali & Steffen Jenner & Felix Groba & Gabriel Chan & Joe Indvik, 2012. "Have State Renewable Portfolio Standards Really Worked?: Synthesizing Past Policy Assessments," Discussion Papers of DIW Berlin 1258, DIW Berlin, German Institute for Economic Research.
  11. Zhao, Xiaoli & Zhang, Sufang & Zou, Yasheng & Yao, Jin, 2013. "To what extent does wind power deployment affect vested interests? A case study of the Northeast China Grid," Energy Policy, Elsevier, vol. 63(C), pages 814-822.

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