Renewable Energy Potential and Renewable Portfolio Standard Adoption
14 Pages Posted: 24 Jun 2015 Last revised: 26 Jun 2015
Date Written: June 22, 2015
Thirty states have adopted renewable portfolio standards (RPSs) that set targets for renewable energy generation by mandating electric power utilities obtain a minimum percentage of their power from renewable sources. To date, there have been a number of studies that have consistently found that political and economic factors impact RPS adoption. There have also been studies that examine the impact of the amount of renewable energy potential in a state on the probability of RPS adoption, but results have largely been statistically weak and inconclusive. After controlling for political and economic factors, we estimate that a one standard deviation increase in wind potential is associated with an approximately 4.2 percentage point increase in the probability of having an RPS, and a one standard deviation increase in solar potential is associated with a 6.1 percentage point increase in the probability of having an RPS.
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