Effects of state and federal policy on renewable electricity generation capacity in the United States

Multiple studies have examined the impact of state-level renewable portfolio standards (RPS) on renewable electricity generating capacity. Two of the most widely cited of these papers (Yin and Powers, 2010; Shrimali et al., 2015) both conclude that as an RPS mandates higher shares of renewable gener...

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Veröffentlicht in:Energy economics 2022-01, Vol.105, p.105764, Article 105764
Hauptverfasser: Mullen, Jeffrey D., Dong, Luran
Format: Artikel
Sprache:eng
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Zusammenfassung:Multiple studies have examined the impact of state-level renewable portfolio standards (RPS) on renewable electricity generating capacity. Two of the most widely cited of these papers (Yin and Powers, 2010; Shrimali et al., 2015) both conclude that as an RPS mandates higher shares of renewable generating capacity within a state, utilities respond by increasing the renewable electricity generating capacity. When we update the data for those models, we find that conclusion is not robust. We also modify those models and extend the datasets out to 2018, and in every model-permutation fail to corroborate the original conclusions. Finally, we examine the impact of the 2009 American Reinvestment and Recovery Act, and find it has had a significant, positive impact on renewable electricity generating capacity. We conclude that state-level RPS are not a sufficient substitute for federal action to reduce greenhouse gas emissions from the electricity sector. Federal leadership matters. This paper also demonstrates the importance of investigating the robustness of previous results to data refinements. •Investigating the robustness of previous results with updated data is important.•2009 ARRA had a positive impact on renewable electricity generating capacity (REGC).•Allowing consumers to choose electricity from renewable sources increases REGC.•State mandated increases are not a necessary precondition to increasing REGC.
ISSN:0140-9883
1873-6181
DOI:10.1016/j.eneco.2021.105764