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Wind energy deployment in the U.S.: An empirical analysis of the role of federal and state policies

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  • Shrimali, Gireesh
  • Lynes, Melissa
  • Indvik, Joe

Abstract

Using a 50-state panel dataset covering the years 1990–2011, we empirically examine the effectiveness of national and state-level policies that encourage wind energy deployment in the U.S. This study is the first to use econometric techniques to examine both the impact of the flagship federal policy – the production tax credit – and the influence of the production tax credit on the effectiveness of state-level policies. First, we show that the national production tax credit alone has been effective in promoting wind energy deployment – 1.4GW per year on average – in the U.S. Second, we show that production tax credit influences the effectiveness of state-level policies in promoting wind deployment. For example, in the presence of the production tax credit, mandatory green power option increases wind deployment in a state by 200MW per year on average. Third, we show that the array of renewable energy resources within a given state positively influences the responsiveness to state and national wind policies.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:rensus:v:43:y:2015:i:c:p:796-806
    DOI: 10.1016/j.rser.2014.11.080
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    References listed on IDEAS

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    1. 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.
    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. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 38(2), pages 112-134.
    4. 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.
    5. Fischlein, Miriam & Larson, Joel & Hall, Damon M. & Chaudhry, Rumika & Rai Peterson, Tarla & Stephens, Jennie C. & Wilson, Elizabeth J., 2010. "Policy stakeholders and deployment of wind power in the sub-national context: A comparison of four U.S. states," Energy Policy, Elsevier, vol. 38(8), pages 4429-4439, August.
    6. Carley, Sanya, 2009. "State renewable energy electricity policies: An empirical evaluation of effectiveness," Energy Policy, Elsevier, vol. 37(8), pages 3071-3081, August.
    7. 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.
    8. Ferguson-Martin, Christopher J. & Hill, Stephen D., 2011. "Accounting for variation in wind deployment between Canadian provinces," Energy Policy, Elsevier, vol. 39(3), pages 1647-1658, March.
    9. 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.
    10. Saidur, R. & Islam, M.R. & Rahim, N.A. & Solangi, K.H., 2010. "A review on global wind energy policy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(7), pages 1744-1762, September.
    11. 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.
    12. Lüthi, Sonja & Prässler, Thomas, 2011. "Analyzing policy support instruments and regulatory risk factors for wind energy deployment--A developers' perspective," Energy Policy, Elsevier, vol. 39(9), pages 4876-4892, September.
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    Citations

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    Cited by:

    1. Goetzke, Frank & Rave, Tilmann, 2016. "Exploring heterogeneous growth of wind energy across Germany," Utilities Policy, Elsevier, vol. 41(C), pages 193-205.
    2. Gilbert, Alexander Q. & Sovacool, Benjamin K., 2016. "Looking the wrong way: Bias, renewable electricity, and energy modelling in the United States," Energy, Elsevier, vol. 94(C), pages 533-541.
    3. Lynes, Melissa & Featherstone, Allen, 2015. "Economic Efficiency of Utility Plants Under Renewable Energy Policy," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205674, Agricultural and Applied Economics Association.
    4. repec:eee:rensus:v:97:y:2018:i:c:p:1-13 is not listed on IDEAS
    5. repec:eee:renene:v:130:y:2019:i:c:p:536-546 is not listed on IDEAS
    6. repec:eee:enepol:v:123:y:2018:i:c:p:117-126 is not listed on IDEAS
    7. repec:eee:enepol:v:122:y:2018:i:c:p:622-638 is not listed on IDEAS
    8. al Irsyad, Muhammad Indra & Halog, Anthony & Nepal, Rabindra, 2019. "Renewable energy projections for climate change mitigation: An analysis of uncertainty and errors," Renewable Energy, Elsevier, vol. 130(C), pages 536-546.
    9. Shrimali, Gireesh & Pusarla, Shreya & Trivedi, Saurabh, 2017. "Did accelerated depreciation result in lower generation efficiencies for wind plants in India: An empirical analysis," Energy Policy, Elsevier, vol. 102(C), pages 154-163.

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