Do State Renewable Portfolio Standards Promote In-State Renewable Generation?

Energy Policy, 38 (2010) 1140 –1149

10 Pages Posted: 29 Sep 2013

See all articles by haitao Yin

haitao Yin

Shanghai Jiao Tong University (SJTU) - Antai College of Economics and Management

Nicholas Powers

The Brattle Group

Date Written: September 28, 2010

Abstract

Several US states have passed renewable portfolio standard (RPS) policies in order to encourage investment in renewable energy technologies. Existing research on their effectiveness has either employed a cross-sectional approach or has ignored heterogeneity among RPS policies. In this paper, we introduce a new measure for the stringency of an RPS that explicitly accounts for some RPS design features that may have a significant impact on the strength of an RPS. We also investigate the impacts of renewable portfolio standards on in-state renewable electricity development using panel data and our new measure of RPS stringency, and compare the results with those when alternative measures are used. Using our new measure, the results suggest that RPS policies have had a significant and positive effect on in-state renewable energy development, a finding which is masked when design differences among RPS policies are ignored. We also find that another important design feature – allowing "free trade" of REC’s – can significantly weaken the impact of an RPS. These results should prove instructive to policy makers, whether considering the development of a federal-level RPS or the development or redesign of a state-level RPS.

Keywords: Renewable energy, Renewable portfolio standards, Policy design

Suggested Citation

Yin, Haitao and Powers, Nicholas, Do State Renewable Portfolio Standards Promote In-State Renewable Generation? (September 28, 2010). Energy Policy, 38 (2010) 1140 –1149. Available at SSRN: https://ssrn.com/abstract=2332613

Haitao Yin (Contact Author)

Shanghai Jiao Tong University (SJTU) - Antai College of Economics and Management ( email )

No.535 Fahuazhen Road
Shanghai Jiao Tong University
Shanghai, Shanghai 200052
China

Nicholas Powers

The Brattle Group ( email )

1850 M St NW
Suite 1200
Washington, DC 20036
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
237
Abstract Views
1,089
rank
134,164
PlumX Metrics