Funding Renewable Energy: An Analysis of Renewable Portfolio Standards

Abstract

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 model finds that states with RPSs experience increases in electricity prices and decreases in electricity demand. We find no evidence that RPSs are associated with increases in renewable energy generation and weak evidence of emissions reductions.