IDEAS home Printed from https://ideas.repec.org/a/uwp/landec/v92y2016i3p468-490.html
   My bibliography  Save this article

The Disparate Influence of State Renewable Portfolio Standards on Renewable Electricity Generation Capacity

Author

Listed:
  • Karen Maguire
  • Abdul Munasib

Abstract

Several papers have used panel data analyses to examine the effectiveness of U.S. state-level renewable portfolio standards (RPS) in promoting renewable capacity development, but the findings are inconclusive. Estimation of average treatment effects, however, can mask the fact that RPS policies across states are disparate and the treatment states are heterogeneous. We use the synthetic control method to conduct individual case studies of the early adopter states. Our findings indicate that the impact of RPS policies varied across states. We find Texas to be unique among these early adopters in that the RPS policy in Texas has led to increased renewable capacity.

Suggested Citation

  • Karen Maguire & Abdul Munasib, 2016. "The Disparate Influence of State Renewable Portfolio Standards on Renewable Electricity Generation Capacity," Land Economics, University of Wisconsin Press, vol. 92(3), pages 468-490.
    • Handle: RePEc:uwp:landec:v:92:y:2016:i:3:p:468-490
    Note: DOI: 10.3368/le.92.3.468
    as

    Download full text from publisher

    File URL: http://le.uwpress.org/cgi/reprint/92/3/468
    Download Restriction: A subscripton is required to access pdf files. Pay per article is available.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Munasib, Abdul & Rickman, Dan S., 2015. "Regional economic impacts of the shale gas and tight oil boom: A synthetic control analysis," Regional Science and Urban Economics, Elsevier, vol. 50(C), pages 1-17.
    2. Jerome Adda & Russell W. Cooper, 2003. "Dynamic Economics: Quantitative Methods and Applications," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012014, December.
    3. Karen Maguire, 2016. "What’s powering wind? The effect of the U.S. state renewable energy policies on wind capacity (1994–2012)," Applied Economics, Taylor & Francis Journals, vol. 48(58), pages 5717-5730, December.
    4. Sarah Bohn & Magnus Lofstrom & Steven Raphael, 2014. "Did the 2007 Legal Arizona Workers Act Reduce the State's Unauthorized Immigrant Population?," The Review of Economics and Statistics, MIT Press, vol. 96(2), pages 258-269, May.
    5. Alberto Abadie & Javier Gardeazabal, 2003. "The Economic Costs of Conflict: A Case Study of the Basque Country," American Economic Review, American Economic Association, vol. 93(1), pages 113-132, March.
    6. Stephen G. Donald & Kevin Lang, 2007. "Inference with Difference-in-Differences and Other Panel Data," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 221-233, May.
    7. Carley, Sanya, 2009. "State renewable energy electricity policies: An empirical evaluation of effectiveness," Energy Policy, Elsevier, vol. 37(8), pages 3071-3081, August.
    8. Russell W. Cooper & John C. Haltiwanger, 2006. "On the Nature of Capital Adjustment Costs," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 73(3), pages 611-633.
    9. Shrimali, Gireesh & Kniefel, Joshua, 2011. "Are government policies effective in promoting deployment of renewable electricity resources?," Energy Policy, Elsevier, vol. 39(9), pages 4726-4741, September.
    10. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    11. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
    12. Hitaj, Claudia, 2013. "Wind power development in the United States," Journal of Environmental Economics and Management, Elsevier, vol. 65(3), pages 394-410.
    13. 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.
    14. Carolyn Fischer, 2010. "Renewable Portfolio Standards: When Do They Lower Energy Prices?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 101-120.
    15. Thomas C. Buchmueller & John DiNardo & Robert G. Valletta, 2011. "The Effect of an Employer Health Insurance Mandate on Health Insurance Coverage and the Demand for Labor: Evidence from Hawaii," American Economic Journal: Economic Policy, American Economic Association, vol. 3(4), pages 25-51, November.
    16. Alberto Abadie & Javier Gardeazabal, 2001. "The Economic Costs of Conflict: A Case-Control Study for the Basque Country," NBER Working Papers 8478, National Bureau of Economic Research, Inc.
    17. Hongtao Yi & Richard C. Feiock, 2012. "Policy Tool Interactions and the Adoption of State Renewable Portfolio Standards," Review of Policy Research, Policy Studies Organization, vol. 29(2), pages 193-206, March.
    18. 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.
    19. Wiser, Ryan & Bolinger, Mark & Barbose, Galen, 2007. "Using the Federal Production Tax Credit to Build a Durable Market for Wind Power in the United States," The Electricity Journal, Elsevier, vol. 20(9), pages 77-88, November.
    20. Mideksa, Torben K., 2013. "The economic impact of natural resources," Journal of Environmental Economics and Management, Elsevier, vol. 65(2), pages 277-289.
    21. Barradale, Merrill Jones, 2010. "Impact of public policy uncertainty on renewable energy investment: Wind power and the production tax credit," Energy Policy, Elsevier, vol. 38(12), pages 7698-7709, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. kos Hamburger & G bor Harangoz, 2018. "Factors Affecting the Evolution of Renewable Electricity Generating Capacities: A Panel Data Analysis of European Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 8(5), pages 161-172.
    2. 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.
    3. Thomas Lauf & Kristina Ek & Erik Gawel & Paul Lehmann & Patrik Söderholm, 2020. "The regional heterogeneity of wind power deployment: an empirical investigation of land-use policies in Germany and Sweden," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 63(4), pages 751-778, March.
    4. Tomasi, Silvia, 2022. "The (Non) impact of the Spanish “Tax on the Sun” on photovoltaics prosumers uptake," Energy Policy, Elsevier, vol. 168(C).
    5. Ann Wolverton & Ronald Shadbegian & Wayne B. Gray, 2022. "The U.S. Manufacturing Sector’s Response to Higher Electricity Prices: Evidence from State-Level Renewable Portfolio Standards," NBER Working Papers 30502, National Bureau of Economic Research, Inc.
    6. Jordan Jeffrey & Mathur Aparna & Munasib Abdul & Roy Devesh, 2021. "Did Right-To-Work Laws Impact Income Inequality? Evidence from U.S. States Using the Synthetic Control Method," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 21(1), pages 45-81, January.
    7. Lee, Kangil & Melstrom, Richard T., 2018. "Evidence of increased electricity influx following the regional greenhouse gas initiative," Energy Economics, Elsevier, vol. 76(C), pages 127-135.
    8. Ehrich, Malte & Munasib, Abdul & Roy, Devesh, 2018. "The Hartz reforms and the German labor force," European Journal of Political Economy, Elsevier, vol. 55(C), pages 284-300.
    9. Sugimoto, Kota, 2019. "Does transmission unbundling increase wind power generation in the United States?," Energy Policy, Elsevier, vol. 125(C), pages 307-316.
    10. Dahlke, Steven & Sterling, John & Meehan, Colin, 2019. "Policy and market drivers for advancing clean energy," OSF Preprints hsbry, Center for Open Science.
    11. Kumar, Indraneel & Tyner, Wallace E. & Labi, Samuel & Sinha, Kumares C., 2021. "“The Answer My Friend is Blowin’ in the Wind”: A stochastic assessment of wind farms financial feasibility and economic efficiency," Energy Policy, Elsevier, vol. 159(C).
    12. Hideki Shimada & Kenji Asano & Yu Nagai & Akito Ozawa, 2022. "Assessing the Impact of Offshore Wind Power Deployment on Fishery: A Synthetic Control Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 83(3), pages 791-829, November.
    13. Daniel J Pastor, 2020. "The effects of renewables portfolio standards on renewable energy generation," Economics Bulletin, AccessEcon, vol. 40(3), pages 2121-2133.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maguire, Karen & Munasib, Abdul, 2015. "The Disparate Influence of State Renewable Portfolio Standards (RPS) on U.S. Renewable Electricity Generation Capacity," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 202851, Agricultural and Applied Economics Association.
    2. Karen Maguire & Abdul Munasib, 2013. "Do Renewables Portfolio Standards Increase Electricity Prices? A Synthetic Control Approach," Economics Working Paper Series 1403, Oklahoma State University, Department of Economics and Legal Studies in Business, revised Aug 2013.
    3. 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.
    4. Ehrich, Malte & Munasib, Abdul & Roy, Devesh, 2018. "The Hartz reforms and the German labor force," European Journal of Political Economy, Elsevier, vol. 55(C), pages 284-300.
    5. Munasib, Abdul & Rickman, Dan S., 2015. "Regional economic impacts of the shale gas and tight oil boom: A synthetic control analysis," Regional Science and Urban Economics, Elsevier, vol. 50(C), pages 1-17.
    6. Daniel J Pastor, 2020. "The effects of renewables portfolio standards on renewable energy generation," Economics Bulletin, AccessEcon, vol. 40(3), pages 2121-2133.
    7. Munasib, Abdul & Jordan, Jeffrey L. & Mathur, Aparna & Roy, Devesh, 2015. "Do Right to Work Laws Worsen Income Inequality? Evidence from the Last Five Decades," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205341, Agricultural and Applied Economics Association.
    8. Schumacher, Kim & Yang, Zhuoxiang, 2018. "The determinants of wind energy growth in the United States: Drivers and barriers to state-level development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 97(C), pages 1-13.
    9. Jordan Jeffrey & Mathur Aparna & Munasib Abdul & Roy Devesh, 2021. "Did Right-To-Work Laws Impact Income Inequality? Evidence from U.S. States Using the Synthetic Control Method," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 21(1), pages 45-81, January.
    10. Bidisha Lahiri & Anurag Deb, 2022. "Impact of the Indian “demonetization” policy on its export performance," Empirical Economics, Springer, vol. 62(6), pages 2799-2825, June.
    11. Karen Maguire, 2016. "What’s powering wind? The effect of the U.S. state renewable energy policies on wind capacity (1994–2012)," Applied Economics, Taylor & Francis Journals, vol. 48(58), pages 5717-5730, December.
    12. Barry D. Solomon & Shan Zhou, 2021. "Renewable Portfolio Standards: Do Voluntary Goals vs. Mandatory Standards Make a Difference?," Review of Policy Research, Policy Studies Organization, vol. 38(2), pages 146-163, March.
    13. Bruno Ferman & Cristine Pinto & Vitor Possebom, 2020. "Cherry Picking with Synthetic Controls," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(2), pages 510-532, March.
    14. Sandra Achten & Lars Beyer & Antje-Mareike Dietrich & Dennis Ebeling & Christian Lessmann & Arne Steinkraus, 2019. "Large scale infrastructure investment and economic performance – a case study of Oresund," Applied Economics Letters, Taylor & Francis Journals, vol. 26(1), pages 21-26, January.
    15. Gosens, Jorrit & Hedenus, Fredrik & Sandén, Björn A., 2017. "Faster market growth of wind and PV in late adopters due to global experience build-up," Energy, Elsevier, vol. 131(C), pages 267-278.
    16. 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.
    17. Polzin, Friedemann & Egli, Florian & Steffen, Bjarne & Schmidt, Tobias S., 2019. "How do policies mobilize private finance for renewable energy?—A systematic review with an investor perspective," Applied Energy, Elsevier, vol. 236(C), pages 1249-1268.
    18. Tianyuan Luo & Genti Kostandini, 2022. "Stringent immigration enforcement and responses of the immigrant‐intensive sector: Evidence from E‐Verify adoption in Arizona," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(4), pages 1411-1434, August.
    19. Consolación Quintana-Rojo & Fernando-Evaristo Callejas-Albiñana & Miguel-Ángel Tarancón & Isabel Martínez-Rodríguez, 2020. "Econometric Studies on the Development of Renewable Energy Sources to Support the European Union 2020–2030 Climate and Energy Framework: A Critical Appraisal," Sustainability, MDPI, vol. 12(12), pages 1-26, June.
    20. Sugimoto, Kota, 2019. "Does transmission unbundling increase wind power generation in the United States?," Energy Policy, Elsevier, vol. 125(C), pages 307-316.

    More about this item

    JEL classification:

    • 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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uwp:landec:v:92:y:2016:i:3:p:468-490. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: http://le.uwpress.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.