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Spatial analysis of state policy effects on renewable energy generation capacity in the United States

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  • Thomas, Pinky
  • Collins, Alan R.
  • Etienne, Xiaoli

Abstract

This study evaluates the effectiveness of state-level policies on renewable energy (RE) generation capacity in the United States. Using a comprehensive panel dataset of 3017 counties from 2009 to 2019, we account for county-level variations in policy implementation and employ spatial panel models to capture spillover effects among neighboring counties. Our findings reveal that Renewable Portfolio Standards, expressed as percentage targets, significantly increase RE generation capacity across all sources. Property tax reductions boost solar and wind capacity but do not affect hydro and geothermal energy. In contrast, Energy Efficiency Resource Standards are negatively associated with hydro and geothermal capacity. Other policies, such as the Mandatory Green Power Option, sales tax incentives, and market deregulation, have shown no significant linkage with RE capacity. The results further indicate that spatial spillover effects are more pronounced for solar and wind generation capacity than for hydro and geothermal generation capacity. These findings highlight the need for tailored policies that consider the unique characteristics of each renewable energy source and account for regional interdependence in policy design.

Suggested Citation

  • Thomas, Pinky & Collins, Alan R. & Etienne, Xiaoli, 2026. "Spatial analysis of state policy effects on renewable energy generation capacity in the United States," Utilities Policy, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:juipol:v:98:y:2026:i:c:s095717872500195x
    DOI: 10.1016/j.jup.2025.102080
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    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • 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

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