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Renewable Portfolio Standards

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Abstract

State-level renewable portfolio standards (RPSs) aim to encourage renewable energy and discourage greenhouse gas (GHG) emissions from the electric power sector in the United States. Do they work? Some prominent government agencies and advocacy groups assert that U.S. renewables growth has been largely due to RPSs. That seems unlikely, given that in most regions, renewables exceed RPS requirements. But it’s not an easy question to answer, thanks to interstate trading and the possibility that states with abundant renewable resources might set the most ambitious RPS goals. We combine the best features of three recent academic studies, using reduced-form and instrumental variables approaches. In some specifications, RPSs do appear to lower carbon emissions and boost wind and solar generation. But the effects are small—consistent with the academic findings and in contrast to the public claims and policy goals. Classification- Q42 Q48

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  • Rachel Feldman & Arik Levinson, 2022. "Renewable Portfolio Standards," Working Papers gueconwpa~22-22-01, Georgetown University, Department of Economics.
    • Handle: RePEc:geo:guwopa:gueconwpa~22-22-01
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    References listed on IDEAS

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    1. Alex Hollingsworth & Ivan Rudik, 2019. "External Impacts of Local Energy Policy: The Case of Renewable Portfolio Standards," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 6(1), pages 187-213.
    2. Thomas P. Lyon & Haitao Yin, 2010. "Why Do States Adopt Renewable Portfolio Standards?: An Empirical Investigation," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 133-158.
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    Keywords

    solar and wind energy; fossil fuels; renewable energy credits;
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