Michael Greenstone, Ishan Nath
The most prevalent climate policies in the U.S. are Renewable Portfolio Standards (RPS), which mandate a specified share of electricity come from sources such as wind and solar. Using a com-prehensive data set and a difference-in-differences style research design, we find that electricity prices are 11% higher seven years after RPS passage and carbon emissions are 11-24% lower. Point estimates suggest that the cost per ton of CO2 abatement ranges from $80-$210 in preferred speci-fications. We also find suggestive evidence that the cost of each increment of mandated renewable generation has declined over time as the costs of renewable energy sources have fallen.
Areas of Focus: Energy Markets, Renewable Energy, Climate Law & Policy, Fueling Technology Deployment with a Clean Electricity Standard
Definition
Energy Markets
Well-functioning markets are essential for providing access to reliable, affordable energy. EPIC research is uncovering the policies, prices and information needed to help energy markets work efficiently.
Definition
Renewable Energy
Lower technology costs and supportive public policies are driving an increase in renewable energy in markets around the world. EPIC research is assessing the costs, benefits, and efficiency of policies...
Definition
Climate Law & Policy
As countries around the world implement policies to confront climate change, EPIC research is calculating which policies will have the most impact for the least cost.
Definition
Fueling Technology Deployment with a Clean Electricity Standard
A national Clean Electricity Standard that is flexible, technology neutral, and linked to carbon reduction policies in other sectors could go a long way in decarbonizing the power sector. Policymakers...