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Are government policies effective in promoting deployment of renewable electricity resources?

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  • Shrimali, Gireesh
  • Kniefel, Joshua
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    Abstract

    Using a panel data over 50 US states and years 1991-2007, this paper uses a state fixed-effects model with state-specific time-trends to estimate the effects of state policies on the penetration of various emerging renewable electricity sources, including wind, biomass, geothermal, and solar photovoltaic. Renewable portfolio standards with either capacity or sales requirements have a significant impact on the penetration of all types of renewables--however, this impact is variable depending on the type of renewable source: it is negative for combined renewables, wind, and biomass; and positive for geothermal and solar. Further, clean energy funds and required green power options mostly result in increasing the penetration of all types of renewables. On the other hand, voluntary renewable portfolio standards as well as state green power purchasing programs are found to be ineffective in increasing the penetration of any type of renewable source. Finally, economic variables, such as electricity price, natural gas price, and per capita GDP as well as structural variables, such as league of conservation voters rating and the share of coal-generated electricity are found to be generally insignificant, suggesting the crucial role of policy in increasing the penetration of renewables.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0301421511005118
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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 39 (2011)
    Issue (Month): 9 (September)
    Pages: 4726-4741

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    Handle: RePEc:eee:enepol:v:39:y:2011:i:9:p:4726-4741

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

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    Keywords: Renewable deployment State policy impact Econometric analysis;

    References

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    1. Langniss, Ole & Wiser, Ryan, 2003. "The renewables portfolio standard in Texas: an early assessment," Energy Policy, Elsevier, vol. 31(6), pages 527-535, May.
    2. 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.
    3. Carley, Sanya, 2009. "State renewable energy electricity policies: An empirical evaluation of effectiveness," Energy Policy, Elsevier, vol. 37(8), pages 3071-3081, August.
    4. Menz, Fredric C. & Vachon, Stephan, 2006. "The effectiveness of different policy regimes for promoting wind power: Experiences from the states," Energy Policy, Elsevier, vol. 34(14), pages 1786-1796, September.
    5. Bird, Lori & Bolinger, Mark & Gagliano, Troy & Wiser, Ryan & Brown, Matthew & Parsons, Brian, 2005. "Policies and market factors driving wind power development in the United States," Energy Policy, Elsevier, vol. 33(11), pages 1397-1407, July.
    6. Baldwin, Robert E & Magee, Christopher S, 2000. " Is Trade Policy for Sale? Congressional Voting on Recent Trade Bills," Public Choice, Springer, vol. 105(1-2), pages 79-101, October.
    7. Ryan Wiser & Kevin Porter & Robert Grace, 2005. "Evaluating Experience with Renewables Portfolio Standards in the United States," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 10(2), pages 237-263, April.
    8. Kalt, Joseph P & Zupan, Mark A, 1984. "Capture and Ideology in the Economic Theory of Politics," American Economic Review, American Economic Association, vol. 74(3), pages 279-300, June.
    9. Bolinger, Mark & Wiser, Ryan & Fitzgerald, Garrett, 2005. "An Overview of Investments by State Renewable Energy Funds in Large-Scale Renewable Generation Projects," The Electricity Journal, Elsevier, vol. 18(1), pages 78-84.
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    Cited by:
    1. 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.
    2. 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.
    3. Krasko, Vitaliy A. & Doris, Elizabeth, 2013. "State distributed PV policies: Can low cost (to government) policies have a market impact?," Energy Policy, Elsevier, vol. 59(C), pages 172-181.
    4. 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.
    5. Johnson, Erik Paul, 2014. "The cost of carbon dioxide abatement from state renewable portfolio standards," Resource and Energy Economics, Elsevier, vol. 36(2), pages 332-350.

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