Wind energy deployment in the U.S.: An empirical analysis of the role of federal and state policies

Gireesh Shrimali, Melissa Lynes and Joe Indvik

Renewable and Sustainable Energy Reviews, 2015, vol. 43, issue C, 796-806

Abstract: Using a 50-state panel dataset covering the years 1990–2011, we empirically examine the effectiveness of national and state-level policies that encourage wind energy deployment in the U.S. This study is the first to use econometric techniques to examine both the impact of the flagship federal policy – the production tax credit – and the influence of the production tax credit on the effectiveness of state-level policies. First, we show that the national production tax credit alone has been effective in promoting wind energy deployment – 1.4GW per year on average – in the U.S. Second, we show that production tax credit influences the effectiveness of state-level policies in promoting wind deployment. For example, in the presence of the production tax credit, mandatory green power option increases wind deployment in a state by 200MW per year on average. Third, we show that the array of renewable energy resources within a given state positively influences the responsiveness to state and national wind policies.

Keywords: Wind energy; Production tax credits; Renewable portfolio standards (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:rensus:v:43:y:2015:i:c:p:796-806

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DOI: 10.1016/j.rser.2014.11.080

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