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Do state renewable portfolio standards promote in-state renewable generation[glottal stop]


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  • Yin, Haitao
  • Powers, Nicholas
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    Several US states have passed renewable portfolio standard (RPS) policies in order to encourage investment in renewable energy technologies. Existing research on their effectiveness has either employed a cross-sectional approach or has ignored heterogeneity among RPS policies. In this paper, we introduce a new measure for the stringency of an RPS that explicitly accounts for some RPS design features that may have a significant impact on the strength of an RPS. We also investigate the impacts of renewable portfolio standards on in-state renewable electricity development using panel data and our new measure of RPS stringency, and compare the results with those when alternative measures are used. Using our new measure, the results suggest that RPS policies have had a significant and positive effect on in-state renewable energy development, a finding which is masked when design differences among RPS policies are ignored. We also find that another important design feature - allowing "free trade" of REC's - can significantly weaken the impact of an RPS. These results should prove instructive to policy makers, whether considering the development of a federal-level RPS or the development or redesign of a state-level RPS.

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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 38 (2010)
    Issue (Month): 2 (February)
    Pages: 1140-1149

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    Handle: RePEc:eee:enepol:v:38:y:2010:i:2:p:1140-1149

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    Keywords: Renewable energy Renewable portfolio standards Policy design;


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    Cited by:
    1. Abolhosseini, Shahrouz & Heshmati, Almas, 2014. "The Main Support Mechanisms to Finance Renewable Energy Development," IZA Discussion Papers 8182, Institute for the Study of Labor (IZA).
    2. Brown, Marilyn A. & Baek, Youngsun, 2010. "The forest products industry at an energy/climate crossroads," Energy Policy, Elsevier, Elsevier, vol. 38(12), pages 7665-7675, December.
    3. Felix Groba, 2011. "Determinants of Trade with Solar Energy Technology Components: Evidence on the Porter Hypothesis?," Discussion Papers of DIW Berlin 1163, DIW Berlin, German Institute for Economic Research.
    4. Johnson, Erik Paul, 2014. "The cost of carbon dioxide abatement from state renewable portfolio standards," Resource and Energy Economics, Elsevier, Elsevier, vol. 36(2), pages 332-350.
    5. Levin, Todd & Thomas, Valerie M. & Lee, Audrey J., 2011. "State-scale evaluation of renewable electricity policy: The role of renewable electricity credits and carbon taxes," Energy Policy, Elsevier, Elsevier, vol. 39(2), pages 950-960, February.
    6. Shrimali, Gireesh & Kniefel, Joshua, 2011. "Are government policies effective in promoting deployment of renewable electricity resources?," Energy Policy, Elsevier, Elsevier, vol. 39(9), pages 4726-4741, September.
    7. Zhao, Yong & Tang, Kam Ki & Wang, Li-li, 2013. "Do renewable electricity policies promote renewable electricity generation? Evidence from panel data," Energy Policy, Elsevier, Elsevier, vol. 62(C), pages 887-897.
    8. Wiser, Ryan & Barbose, Galen & Holt, Edward, 2011. "Supporting solar power in renewables portfolio standards: Experience from the United States," Energy Policy, Elsevier, Elsevier, vol. 39(7), pages 3894-3905, July.
    9. Schelly, Chelsea, 2014. "Implementing renewable energy portfolio standards: The good, the bad, and the ugly in a two state comparison," Energy Policy, Elsevier, Elsevier, vol. 67(C), pages 543-551.
    10. Yi, Hongtao, 2013. "Clean energy policies and green jobs: An evaluation of green jobs in U.S. metropolitan areas," Energy Policy, Elsevier, Elsevier, vol. 56(C), pages 644-652.
    11. Felix Groba & Barbara Breitschopf, 2013. "Impact of Renewable Energy Policy and Use on Innovation: A Literature Review," Discussion Papers of DIW Berlin 1318, DIW Berlin, German Institute for Economic Research.
    12. Daeho Kim & Jimin Kim & Choongwan Koo & Taehoon Hong, 2014. "An Economic and Environmental Assessment Model for Selecting the Optimal Implementation Strategy of Fuel Cell Systems—A Focus on Building Energy Policy," Energies, MDPI, Open Access Journal, vol. 7(8), pages 5129-5150, August.
    13. Marcelo Saguan & Leonardo Meeus, 2011. "Modeling the Cost of Achieving a Renewable Energy Target: Does it Pay to Cooperate Across Borders?," RSCAS Working Papers, European University Institute 2011/46, European University Institute.
    14. Delmas, Magali A. & Montes-Sancho, Maria J., 2011. "U.S. state policies for renewable energy: Context and effectiveness," Energy Policy, Elsevier, Elsevier, vol. 39(5), pages 2273-2288, May.


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