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Electricity Price Increase in Texas: What is the Role of RPS?

Author

Listed:
  • Karen Maguire

    (Oklahoma State University)

  • Abdul Munasib

    (Bureau of Economic Analysis, U.S. Department of Commerce)

Abstract

Over the last two decades, more than half of the states in the United States have adopted a renewable portfolio standard (RPS). While vital environmental goals underlie the rationale for RPS there is a rising concern that the policy may lead to increased electricity prices. Using the synthetic control method we conduct a comparative case study of Texas, an early adopter of RPS and arguably a success story. Our statistical tests find no evidence that RPS was a contributing factor in Texas’s electricity price increase.

Suggested Citation

  • Karen Maguire & Abdul Munasib, 2018. "Electricity Price Increase in Texas: What is the Role of RPS?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 69(2), pages 293-316, February.
    • Handle: RePEc:kap:enreec:v:69:y:2018:i:2:d:10.1007_s10640-016-0079-2
    DOI: 10.1007/s10640-016-0079-2
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Renewable portfolio standard (RPS); Electricity price; Synthetic control method (SCM);
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations

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