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Impact of state policies on generating capacity for production of electricity and combined heat and power from forest biomass in the United States

Anna Ebers Broughel

Renewable Energy, 2019, vol. 134, issue C, 1163-1172

Abstract: This research enhances the understanding of the complex relationship between state policies and decisions to invest into bioenergy generation capacity. Specifically, the paper evaluates the impact of state policies on large-scale generating capacity (over 1 Megawatt) for production of electricity and combined heat and power from forest biomass in the United States. Controlling for state-specific factors, the article investigates which policy types (regulation, information provision, production incentives, tax incentives, or project financing) and policy foci (e.g. policies specifically targeting forest bioenergy vs. renewable energy production in general) were associated with higher bioenergy capacities in the years 2004–2013. The analysis is based on a unique dataset of 450 state bioenergy policies in effect in the years 2003–2012. The introduction of tax incentives (especially tax credits), as well as policy packages with ten or more policies is associated with higher installed bioenergy capacity. In contrast, no statistically significant relationship was found between bioenergy capacity and introduction of production incentives, project financing, and regulations. Apart from policy impacts, the strongest predictor of installed capacity is the sufficient availability of forest biomass.

Keywords: Renewable energy; Bioenergy; Policy effectiveness; Policy package (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:134:y:2019:i:c:p:1163-1172

DOI: 10.1016/j.renene.2018.09.058

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