What Determines Effectiveness of Renewable Energy Standards? General Equilibrium Analytical Model and Empirical Analysis

Don Fullerton; Chi L. Ta

doi:10.3386/w29783

What Determines Effectiveness of Renewable Energy Standards? General Equilibrium Analytical Model and Empirical Analysis

Don Fullerton & Chi L. Ta

Working Paper 29783

DOI 10.3386/w29783

Issue Date February 2022

Our new analytical general equilibrium model is used to study effects of tightening state Renewable Portfolio Standards (RPS) on electricity price, CO2 emissions, fossil fuel electricity generation, and two kinds of renewable generation. We show how those outcomes depend on key state characteristics such as endowments of potential intermittent and non-intermittent (“dispatchable”) renewable sources and the degree of intermittency. Our three extensions investigate key assumptions. We prove theorems and derive empirical hypotheses about what state characteristics makes RPS programs more effective. Using U.S. state-level data from 1990 to 2015, we find the data are consistent with these hypotheses.

For helpful comments and suggestions, we wish to thank Tatyana Deryugina, Teevrat Garg, Alex Hollingsworth, Daniel Kaffine, Madhu Khanna, Erica Myers, Karen Palmer, and various seminar participants. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

Don Fullerton
This research had no outside support or funding. Neither I nor any close family member has received any other funding from any interested party. Neither I nor any close family member has a paid or unpaid position as officer, director, or board member of any relevant non-profit organization or profit-making entity. No other party had the right to review the paper prior to its circulation. The research used no human subjects, and so it does not need IRB approval.

Chi L. Ta
This research had no outside support or funding. Neither I nor any close family member has received any other funding from any interested party. Neither I nor any close family member has a paid or unpaid position as officer, director, or board member of any relevant non-profit organization or profit-making entity. No other party had the right to review the paper prior to its circulation. The research used no human subjects, and so it does not need IRB approval.
MARC RIS BibTeΧ

What Determines Effectiveness of Renewable Energy Standards? General Equilibrium Analytical Model and Empirical Analysis

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