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Effects of state and federal policy on renewable electricity generation capacity in the United States

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  • Mullen, Jeffrey D.
  • Dong, Luren

Abstract

Multiple studies have examined the impact of state-level renewable portfolio standards (RPS) on renewable electricity generating capacity. Two of the most widely cited of these papers (Yin and Powers, 2010; Shrimali et al., 2015) both conclude that as an RPS mandates higher shares of renewable generating capacity within a state, utilities respond by increasing the renewable electricity generating capacity. When we update the data for those models, we find that conclusion is not robust. We also modify those models and extend the datasets out to 2018, and in every model-permutation fail to corroborate the original conclusions. Finally, we examine the impact of the 2009 American Reinvestment and Recovery Act, and find it has had a significant, positive impact on renewable electricity generating capacity. We conclude that state-level RPS are not a sufficient substitute for federal action to reduce greenhouse gas emissions from the electricity sector. Federal leadership matters. This paper also demonstrates the importance of investigating the robustness of previous results to data refinements.

Suggested Citation

  • Mullen, Jeffrey D. & Dong, Luren, 2022. "Effects of state and federal policy on renewable electricity generation capacity in the United States," Energy Economics, Elsevier, vol. 105(C).
    • Handle: RePEc:eee:eneeco:v:105:y:2022:i:c:s014098832100606x
    DOI: 10.1016/j.eneco.2021.105764
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    References listed on IDEAS

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    1. repec:aen:eeepjl:eeep4-2-jenner is not listed on IDEAS
    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. 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.
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    Citations

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    Cited by:

    1. Li, Yi & Liu, Tianya & Xu, Jinpeng, 2023. "Analyzing the economic, social, and technological determinants of renewable and nonrenewable electricity production in China: Findings from time series models," Energy, Elsevier, vol. 282(C).
    2. Liu, Ying & Feng, Chao, 2023. "Promoting renewable energy through national energy legislation," Energy Economics, Elsevier, vol. 118(C).
    3. Li, Li & Wang, Shuai & Wu, Jiaqi & Sun, Zhenqing, 2024. "Exploring the efficacy of renewable energy support policies in uncertain environments: A real options analysis," Energy Economics, Elsevier, vol. 132(C).
    4. Belligoni, Sara & Trader, Elizabeth & Li, Mengjie & Rahman, Mohammad Siddiqur & Ali, Javed & Enriquez, Alejandra Rodriguez & Nagaraj, Meghana & Aksha, Sanam K. & Stevens, Kelly A. & Wahl, Thomas & Emr, 2025. "Transdisciplinary research promoting clean and resilient energy systems for socially vulnerable communities: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 213(C).
    5. Payne, James E. & Saunoris, James W. & Nazlioglu, Saban & Smyth, Russell, 2024. "Renewable energy production across U.S. states: Convergence or divergence?," Energy Economics, Elsevier, vol. 140(C).
    6. Evgeniy Kirichenko & Ksenia Kirichenko & Anna Kirichenko, 2024. "List of Issues That Require Legal Regulation as Part of the Renewable Energy Regulation in Component States of Federation," Energies, MDPI, vol. 17(3), pages 1-24, February.
    7. Wei, Shuni & Yuan, Peng & Yu, Renjie, 2025. "Can renewable portfolio standard promote renewable energy capacity utilization? Empirical evidence from China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 210(C).
    8. Justin B. Winikoff & Dominic P. Parker, 2024. "Farm size, spatial externalities, and wind energy development," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(4), pages 1518-1543, August.

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    Keywords

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    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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