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U.S. state policies for renewable energy: Context and effectiveness

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  • Delmas, Magali A.
  • Montes-Sancho, Maria J.
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    Abstract

    Over the past decade, state policies on renewable energy have been on the rise in the U.S., providing states with various options for encouraging the generation of renewable electricity. Two promising policies, the Renewable Portfolio Standard (RPS) and the Mandatory Green Power Option (MGPO), have been implemented in many states but the evidence about their effectiveness is mixed. In this paper, we argue that recognizing the natural, social, and policy context under which MGPO and RPS are adopted is necessary in order to measure their true effectiveness. This is because the context rather than the policy might lead to positive outcomes and there is the possibility for sample bias. When controlling for the context in which the policies are implemented, we find that RPS has a negative impact on investments in renewable capacity. However, we find that investor-owned utilities seem to respond more positively to RPS mandates than publicly owned utilities. By contrast, MGPO appears to have a significant effect on installed renewable capacity for all utilities regardless of the context in which it is implemented.

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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 39 (2011)
    Issue (Month): 5 (May)
    Pages: 2273-2288

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    Handle: RePEc:eee:enepol:v:39:y:2011:i:5:p:2273-2288

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    Web page: http://www.elsevier.com/locate/enpol

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    Keywords: Policy effectiveness Climate change Renewable energy;

    References

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    Cited by:
    1. Doblinger, Claudia & Soppe, Birthe, 2013. "Change-actors in the U.S. electric energy system: The role of environmental groups in utility adoption and diffusion of wind power," Energy Policy, Elsevier, vol. 61(C), pages 274-284.
    2. Jenner, Steffen & Groba, Felix & Indvik, Joe, 2013. "Assessing the strength and effectiveness of renewable electricity feed-in tariffs in European Union countries," Energy Policy, Elsevier, vol. 52(C), pages 385-401.
    3. Lüthi, Sonja & Prässler, Thomas, 2011. "Analyzing policy support instruments and regulatory risk factors for wind energy deployment--A developers' perspective," Energy Policy, Elsevier, vol. 39(9), pages 4876-4892, September.
    4. Bergek, Anna & Mignon, Ingrid & Sundberg, Gunnel, 2013. "Who invests in renewable electricity production? Empirical evidence and suggestions for further research," Energy Policy, Elsevier, vol. 56(C), pages 568-581.
    5. Zhao, Yong & Tang, Kam Ki & Wang, Li-li, 2013. "Do renewable electricity policies promote renewable electricity generation? Evidence from panel data," Energy Policy, Elsevier, vol. 62(C), pages 887-897.
    6. Bhattacharya, Suparna & Giannakas, Konstantinos & Schoengold, Karina, 2013. "Market and Welfare Effects of Renewable Portfolio Standard in the Vertically Differentiated U.S. Energy Markets," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151216, Agricultural and Applied Economics Association.
    7. Kahn, Matthew E., 2013. "Local non-market quality of life dynamics in new wind farms communities," Energy Policy, Elsevier, vol. 59(C), pages 800-807.
    8. 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.
    9. Reiche, Danyel, 2013. "Climate policies in the U.S. at the stakeholder level: A case study of the National Football League," Energy Policy, Elsevier, vol. 60(C), pages 775-784.

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