IDEAS home Printed from https://ideas.repec.org/a/eee/jeeman/v65y2013i3p394-410.html
   My bibliography  Save this article

Wind power development in the United States

Author

Listed:
  • Hitaj, Claudia

Abstract

This paper analyzes the drivers of wind power development in the United States, focusing on government renewable energy incentives and access to the electricity grid. The effects of wind capacity, electricity transmission line coverage and grid regulation, as well as state and federal subsidies from 1998 to 2007 are estimated via random effects Tobit, Probit, and ordinary least squares instrumental variables regression. The results indicate that the federal production tax credit, state-level sales tax credit and production incentives play an important role in promoting wind power. In addition, higher wind power penetration levels can be achieved by bringing more parts of the electricity transmission grid under independent system operator regulation. This paper concludes that state and federal government policies play a significant role in wind power development both by providing financial support and by improving physical and procedural access to the electricity grid.

Suggested Citation

  • Hitaj, Claudia, 2013. "Wind power development in the United States," Journal of Environmental Economics and Management, Elsevier, vol. 65(3), pages 394-410.
    • Handle: RePEc:eee:jeeman:v:65:y:2013:i:3:p:394-410
    DOI: 10.1016/j.jeem.2012.10.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0095069612001003
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jeem.2012.10.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. 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.
    2. 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.
    3. 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.
    4. Robinson, Peter M, 1982. "On the Asymptotic Properties of Estimators of Models Containing Limited Dependent Variables," Econometrica, Econometric Society, vol. 50(1), pages 27-41, January.
    5. Kirby, Brendan & Milligan, Michael, 2008. "Facilitating Wind Development: The Importance of Electric Industry Structure," The Electricity Journal, Elsevier, vol. 21(3), pages 40-54, April.
    6. Andrew Chupp, B., 2011. "Environmental Constituent Interest, Green Electricity Policies, and Legislative Voting," Journal of Environmental Economics and Management, Elsevier, vol. 62(2), pages 254-266, September.
    7. Langniss, Ole & Wiser, Ryan, 2003. "The renewables portfolio standard in Texas: an early assessment," Energy Policy, Elsevier, vol. 31(6), pages 527-535, May.
    8. Zhang, Lixiao & Yang, Zhifeng & Chen, Bin & Chen, Guoqian, 2009. "Rural energy in China: Pattern and policy," Renewable Energy, Elsevier, vol. 34(12), pages 2813-2823.
    Full references (including those not matched with items on IDEAS)

    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. Wang, Tan & Gong, Yu & Jiang, Chuanwen, 2014. "A review on promoting share of renewable energy by green-trading mechanisms in power system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 923-929.
    2. 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.
    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. Ebers Broughel, Anna, 2019. "Impact of state policies on generating capacity for production of electricity and combined heat and power from forest biomass in the United States," Renewable Energy, Elsevier, vol. 134(C), pages 1163-1172.
    5. 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.
    6. Youhyun Lee & Inseok Seo, 2019. "Sustainability of a Policy Instrument: Rethinking the Renewable Portfolio Standard in South Korea," Sustainability, MDPI, vol. 11(11), pages 1-19, May.
    7. Nicolini, Marcella & Tavoni, Massimo, 2017. "Are renewable energy subsidies effective? Evidence from Europe," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 412-423.
    8. 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.
    9. Shrimali, Gireesh & Lynes, Melissa & Indvik, Joe, 2015. "Wind energy deployment in the U.S.: An empirical analysis of the role of federal and state policies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 796-806.
    10. Lewis, Geoffrey McD., 2010. "Estimating the value of wind energy using electricity locational marginal price," Energy Policy, Elsevier, vol. 38(7), pages 3221-3231, July.
    11. Escoffier, Margaux & Hache, Emmanuel & Mignon, Valérie & Paris, Anthony, 2021. "Determinants of solar photovoltaic deployment in the electricity mix: Do oil prices really matter?," Energy Economics, Elsevier, vol. 97(C).
    12. Cheng, Quan & Yi, Hongtao, 2017. "Complementarity and substitutability: A review of state level renewable energy policy instrument interactions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 683-691.
    13. Daniel J Pastor, 2020. "The effects of renewables portfolio standards on renewable energy generation," Economics Bulletin, AccessEcon, vol. 40(3), pages 2121-2133.
    14. del Río, Pablo & Tarancón, Miguel-Ángel, 2012. "Analysing the determinants of on-shore wind capacity additions in the EU: An econometric study," Applied Energy, Elsevier, vol. 95(C), pages 12-21.
    15. Tang, Amy & Chiara, Nicola & Taylor, John E., 2012. "Financing renewable energy infrastructure: Formulation, pricing and impact of a carbon revenue bond," Energy Policy, Elsevier, vol. 45(C), pages 691-703.
    16. Valérie Mignon & Margaux Escoffier & Emmanuel Hache & Anthony Paris, 2019. "Determinants of investments in solar photovoltaic: Do oil prices really matter?," EconomiX Working Papers 2019-28, University of Paris Nanterre, EconomiX.
    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. Eric Bowen & Donald J. Lacombe, 2017. "Spatial Dependence in State Renewable Policy: Effects of Renewable Portfolio Standards on Renewable Generation within NERC Regions," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    19. Marques, António Cardoso & Fuinhas, José Alberto & Pereira, Diogo Santos, 2019. "The dynamics of the short and long-run effects of public policies supporting renewable energy: A comparative study of installed capacity and electricity generation," Economic Analysis and Policy, Elsevier, vol. 63(C), pages 188-206.
    20. Sakah, Marriette & Diawuo, Felix Amankwah & Katzenbach, Rolf & Gyamfi, Samuel, 2017. "Towards a sustainable electrification in Ghana: A review of renewable energy deployment policies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 544-557.

    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:jeeman:v:65:y:2013:i:3:p:394-410. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622870 .

    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.