Interstate Protectionism: The Case of Solar Renewable Energy Credits

Jed Cohen (), Levan Elbakidze () and Randall Jackson ()
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Jed Cohen: The Energy Institute at Johannes Kepler University
Levan Elbakidze: Division of Resource Economics and Management and the Center for Innovation in Gas Research and Utilization, West Virginia University

Working Papers from Regional Research Institute, West Virginia University

Abstract: Solar Renewable Energy Credits (SRECs) are financial instruments created by state policies to offer incentives for generating solar energy. In an effort to support in-state solar energy sectors and boost local employment opportunities, some states have closed off their SREC markets to out-of-state solar facilities. We examine the merits of such protectionist policy from the protectionist states perspective. We find that SREC market closure leads to higher in-state SREC prices, greater solar installation, and lower electricity prices. The study illustrates the economic incentives for protecting in-state SREC markets from out-of-state solar energy producers.

Keywords: RPS; Solar Energy; Renewable Energy Credits; Interstate Trade; Protectionism (search for similar items in EconPapers)
JEL-codes: H77 Q42 Q48 (search for similar items in EconPapers)
Pages: 59 pages
Date: 2020-08-10
New Economics Papers: this item is included in nep-ene, nep-env and nep-isf
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Persistent link: https://EconPapers.repec.org/RePEc:rri:wpaper:2020rp19

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