Funding renewable energy: An analysis of renewable portfolio standards

• Published in: Energy economics Vol. 66; pp. 205 - 216
• Main Authors: Upton, Gregory B., Snyder, Brian F.
• Format: Journal Article
• Language: English
• Published: Kidlington Elsevier B.V 01-08-2017; Elsevier Science Ltd
• Subjects: Alternative energy; Electric power; Electric power demand; Electric power generation; Electric rates; Electric utilities; Electricity; Electricity consumption; Electricity distribution; Electricity pricing; Emissions control; Energy; Energy economics; Energy policy; Environmental policy; Natural resources; Power; Prices; Renewable energy; Renewable portfolio standards; Renewable resources; Studies; Renewable energy; Q48; Environmental policy; Q58; L94; L51; Energy policy; L98; Renewable portfolio standards; Q42
• ISSN: 0140-9883; 1873-6181
• DOI: 10.1016/j.eneco.2017.06.003

Thirty states have adopted renewable portfolio standards (RPSs) that set targets for renewable energy generation by mandating that electric power utilities obtain a minimum percentage of their power from renewable sources. Our synthetic control (SC) model finds that states with RPSs have experienced increases in electricity prices and decreases in electricity demand relative to non-RPS states with similar economic, political and renewable natural resource characteristics. While both RPS and non-RPS SCs experienced increases in renewable energy generation over the sample time period, we do not find evidence that RPS states have experienced increases in renewable energy generation relative to SCs and weak evidence of emissions reductions.
•We test the impact of RPS policies on state level electricity market outcomes.•We find no evidence that RPS states experienced increases in renewable energy generation relative to comparable non-RPS states.•RPS states have experienced significant increases in electricity prices relative to controls.