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Energy transitions of declining energy industries: the effect of renewable portfolio standards on the U.S. coal industry

Author

Listed:
  • Graziano, Marcello
  • Michieka, Nyakundi
  • Musso, Marta
  • Fouquet, Roger

Abstract

This study examines the influence of renewable portfolio standards (RPS) on coal industry employment and wages in the top 10 U.S. coal-producing states from 2001 to 2018, with a specific focus on the 2003–2009 RPS adoption period. Employing a difference-in-differences methodology and utilizing data encompassing employment, gas prices, and RPS-related MWh at the quarterly level, our findings reveal that RPS had only temporary and minor adverse effects on coal employment. These effects manifested with a delay of up to four quarters but dissipated within two years. Moreover, RPS had no significant impact on state’s coal sector wages.

Suggested Citation

  • Graziano, Marcello & Michieka, Nyakundi & Musso, Marta & Fouquet, Roger, 2024. "Energy transitions of declining energy industries: the effect of renewable portfolio standards on the U.S. coal industry," LSE Research Online Documents on Economics 139019, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:139019
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    File URL: https://researchonline.lse.ac.uk/id/eprint/139019/
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    JEL classification:

    • 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
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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