Do Red States Have a Comparative Advantage in Generating Green Power?

Robert Huang and Matthew Kahn

Environmental and Energy Policy and the Economy, 2024, vol. 5, issue 1, 200 - 238

Abstract: The passage of the 2022 Inflation Reduction Act will lead to a significant increase in US wind and solar power investment. Renewable power generation requires more land than fossil fuel fired power generation. The land that will be allocated to renewables depends on several demand-side and supply-side factors such as the land’s renewable power potential, cost of acquisition, proximity to final power consumers, and local land use regulations. We find that Republican areas are more likely to issue interconnection permits than progressive areas. We present evidence that rural Republican areas have a cost advantage in generating wind power; however, Democratic areas have sited more solar capacity. We use our statistical model to identify Republican congressional districts that have the potential to scale up green power production.

Date: 2024
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Chapter: Do Red States Have a Comparative Advantage in Generating Green Power? (2023)
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