Why Do States Adopt Renewable Portfolio Standards ? : An Empirical Investigation

  title={Why Do States Adopt Renewable Portfolio Standards ? : An Empirical Investigation},
  author={Thomas P. Lyon and Haitao Yin},
Renewable portfolio standards (RPSs) for electricity generation are politically popular in many U.S. states although economic analysis suggests they are not first-best policies. We present an empirical analysis of the political and economic factors that drive state governments to adopt an RPS, and the factors that lead to the inclusion of instate requirements given the adoption of an RPS. We find that states are more likely to be early adopters of an RPS if they have high renewable resource… CONTINUE READING
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