Evaluating Renewable Portfolio Standards for In-State Renewable Deployment: Accounting for Policy Heterogeneity

Shrimali, Gireesh; Chan, Gabriel; Jenner, Steffen; Groba, Felix; Indvik, Joe

doi:10.5547/2160-5890.4.2.gshr

Cited by 25 publications

(15 citation statements)

References 7 publications

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“…However, due to limitations on appropriate data availability we measure the effects of these polices in an aggregate sense in terms of policy presence or absence at the state level disregarding state specific policy structure. Previous literature has documented (Dijkgraaf et al 2018;Bowen and Lacombe 2017;Shrimali et al 2015) that heterogeneity of policy specifics across jurisdictions can have a significant effect on estimated effectiveness.…”

Section: Caveatsmentioning

confidence: 99%

Solar Bait: How U.S. States Attract Solar Investments from Large Corporations

Cohen¹,

Elbakidze²,

Jackson³

2020

The Energy Journal

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Past solar adoption literature has focused primarily on households without significant attention to the potential of commercial properties as sites for solar generation. We examine firms' decisions to install solar panels on their properties using state and firm level data from the U.S. We are interested in the effects of state level characteristics, including policies and regulations, on firm decisions regarding solar investments. We find that state characteristics that influence the return-on-investment from solar installations, most notably solar intensity, are important for commercial adoption decisions. Further, the results suggest that certain state level policies, including solar carve-outs in renewable portfolio standards, financing programs and tax breaks, can incentivize firms to install solar panels. Across different model specifications, we observe that firm installation decisions are correlated with personal electric vehicle ownership rates. This may indicate a 'green' business marketing strategy, whereby firms install solar to improve their social responsibility image.

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Section: Caveatsmentioning

confidence: 99%

Solar Bait: How U.S. States Attract Solar Investments from Large Corporations

Cohen¹,

Elbakidze²,

Jackson³

2020

The Energy Journal

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“…13. In line with this conclusion, Shrimali et al (2015), who econometrically analyze the effectiveness of RPS policies in the USA, show that modeling of specific RPS design features is essential, as not doing so may lead to misperceptions. (2011a), who compare quantity-driven instruments (like tenders and Tradable Green Certificates (TGCs) based on quotas 10 ) and price-driven instruments (like FITs) in European countries, state that FIT policy instruments are more effective than others in the deployment of less mature technologies, like solar PV technology, because they tend to have low administration costs, are relatively easy to implement and are technology focused.…”

Section: Introductionmentioning

confidence: 85%

On the Effectiveness of Feed-in Tariffs in the Development of Solar Photovoltaics

Dijkgraaf¹,

Dorp²,

Maasland³

2018

The Energy Journal

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Growing concern about climate change and rising prices of fossil fuels has prompted governments to stimulate the development of renewables. The most common instrument is a feed-in tariff (FIT). This paper empirically tests whether or not FIT policies have been effective in encouraging the development of photovoltaic solar (PV), explicitly taking into account the structure and consistency of FITs. Panel data estimations are employed for 30 OECD member countries in the period 1990-2011. We find a positive effect of the presence of a FIT on the development of a country's added yearly capacity of PV per capita. This is in line with the results found in the existing literature. However, our study shows that the literature underestimates the potential impact of FITs, as the effect of a welldesigned FIT is much larger than the average effect of the currently applied FITs. Not only the height of the tariff is important, but also the duration of the contract and the absence/presence of a cap have an impact. We also show that consistency greatly affects the effectiveness of FITs. Consistency is especially important when the tariff of a FIT is low. The total effect of a FIT can be seven times larger if it is well designed. Our results are robust for differences between countries with respect to the availability of other policy instruments, the use of nuclear or hydro power and the level of CO 2 emissions.

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“…(Shrimali, Chan, et al, 2015;Yin and Powers 2010). By adjusting the estimates for existing renewable electricity capacity, this measure captures the utilities' need to add new renewable energy generation capacity to their portfolio (Shrimali, Chan, et al, 2015). Specifically, we use the incremental requirement in wind energy generation mandated by an RPS policy.…”

Section: Explanatory Variable: State Renewable Energy Policymentioning

confidence: 99%

State Policy and Lobbying in a Federal System: Evidence from the Production Tax Credit for Renewable Energy, 1998–2012

Kim

Urpelainen

Yang

2021

State Politics Policy Q.

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State policies shape firms’ incentives to lobby in the United States, but the existing lobbying literature mostly ignores these incentives. Using lobbying records for all electric utilities in the United States from 1998 to 2012, we examine how state policies affect federal lobbying by both proponents and opponents of federal support for the renewable energy policy. Our theory predicts that supportive state policies reduce the returns to lobbying by both proponents and opponents. Empirically, we show that when the federal production tax credit for renewable energy is about to expire, electric utilities from states without renewable portfolio standards become more likely to lobby than those from states with these policies. Because the timing of the expiration of the production tax credit is quasi-random, these findings carry a causal interpretation. Using text analysis techniques, we also show that the lobbying efforts are focused on energy and environmental issues while lobbying on unrelated topics remains unaffected.

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Evaluating Renewable Portfolio Standards for In-State Renewable Deployment: Accounting for Policy Heterogeneity

Abstract: Yin and Powers (2010). Further, there is an emerging series of studies focusing on other regions. Marques et al. (2010; 2011) and Groba et al. (2011) study the effect of renewable energy policy in the EU. Salim and Rafiq (2012) conduct a similar study for several major emerging economies.

Cited by 25 publications

References 7 publications

Solar Bait: How U.S. States Attract Solar Investments from Large Corporations

Solar Bait: How U.S. States Attract Solar Investments from Large Corporations

On the Effectiveness of Feed-in Tariffs in the Development of Solar Photovoltaics

State Policy and Lobbying in a Federal System: Evidence from the Production Tax Credit for Renewable Energy, 1998–2012

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