IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v37y2009i8p3071-3081.html
   My bibliography  Save this article

State renewable energy electricity policies: An empirical evaluation of effectiveness

Author

Listed:
  • Carley, Sanya

Abstract

Over the past decade, state governments have emerged as US energy policy leaders. Across the country, states are adopting policy instruments aimed at carbon mitigation and renewable energy deployment. One of the most prevalent and innovative policy instruments is a renewable portfolio standard (RPS), which seeks to increase the share of renewable energy electrification in the electricity market. This analysis evaluates the effectiveness of state energy programs with an empirical investigation of the linkage between state RPS policy implementation and the percentage of renewable energy electricity generation across states. We use a variant of a standard fixed effects model, referred to as a fixed effects vector decomposition, with state-level data from 1998 to 2006. Results indicate that RPS implementation is not a significant predictor of the percentage of renewable energy generation out of the total generation mix, yet for each additional year that a state has an RPS policy, they are found to increase the total amount of renewable energy generation. These findings reveal a potentially significant shortcoming of RPS policies. Political institutions, natural resource endowments, deregulation, gross state product per capita, electricity use per person, electricity price, and the presence of regional RPS policies are also found to be significantly related to renewable energy deployment.

Suggested Citation

  • Carley, Sanya, 2009. "State renewable energy electricity policies: An empirical evaluation of effectiveness," Energy Policy, Elsevier, vol. 37(8), pages 3071-3081, August.
  • Handle: RePEc:eee:enepol:v:37:y:2009:i:8:p:3071-3081
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301-4215(09)00225-0
    Download Restriction: Full text for ScienceDirect subscribers only

    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. Lori Snyder Bennear, 2007. "Are management-based regulations effective? Evidence from state pollution prevention programs," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 26(2), pages 327-348.
    2. Huang, Ming-Yuan & Alavalapati, Janaki R.R. & Carter, Douglas R. & Langholtz, Matthew H., 2007. "Is the choice of renewable portfolio standards random?," Energy Policy, Elsevier, vol. 35(11), pages 5571-5575, November.
    3. Pl├╝mper, Thomas & Troeger, Vera E., 2007. "Efficient Estimation of Time-Invariant and Rarely Changing Variables in Finite Sample Panel Analyses with Unit Fixed Effects," Political Analysis, Cambridge University Press, vol. 15(02), pages 124-139, March.
    4. Douglass C. North, 1990. "A Transaction Cost Theory of Politics," Journal of Theoretical Politics, , vol. 2(4), pages 355-367, October.
    5. Harmelink, Mirjam & Voogt, Monique & Cremer, Clemens, 2006. "Analysing the effectiveness of renewable energy supporting policies in the European Union," Energy Policy, Elsevier, vol. 34(3), pages 343-351, February.
    6. 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.
    7. Berry, Trent & Jaccard, Mark, 2001. "The renewable portfolio standard:: design considerations and an implementation survey," Energy Policy, Elsevier, vol. 29(4), pages 263-277, March.
    8. Palmer, Karen & Burtraw, Dallas, 2005. "Cost-effectiveness of renewable electricity policies," Energy Economics, Elsevier, vol. 27(6), pages 873-894, November.
    9. Hall, Peter A. & Taylor, Rosemary C. R., 1996. "Political science and the three new institutionalisms," MPIfG Discussion Paper 96/6, Max Planck Institute for the Study of Societies.
    10. Langniss, Ole & Wiser, Ryan, 2003. "The renewables portfolio standard in Texas: an early assessment," Energy Policy, Elsevier, vol. 31(6), pages 527-535, May.
    11. Gan, Lin & Eskeland, Gunnar S. & Kolshus, Hans H., 2007. "Green electricity market development: Lessons from Europe and the US," Energy Policy, Elsevier, vol. 35(1), pages 144-155, January.
    12. Espey, Simone, 2001. "Renewables portfolio standard: a means for trade with electricity from renewable energy sources?," Energy Policy, Elsevier, vol. 29(7), pages 557-566, June.
    13. 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.
    Full references (including those not matched with items on IDEAS)

    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:eee:enepol:v:37:y:2009:i:8:p:3071-3081. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/enpol .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.