The Impact of the Strength of State Renewable Portfolio Standards on Wind Energy Development

Public concerns are growing in the United States about the impacts of fossil fuel-based energy. In recent years, 21 state legislatures have enacted Renewable Portfolio Standards (RPS) to help promote the transition to alternatives. An RPS is a mandate that a future percentage of the electricity sold in the state must come from renewable sources. Previous research has determined that having an RPS is associated with the construction of wind power capacity, the renewable source with the most growth. But states differ greatly in the strength of their RPS and in the window of time in which electricity retailers must meet the mandate. As awareness of global warming increases, and as states compete for the economic development benefits of renewable power, policymakers need to know if they can use RPS to “speed up” their transition. This study assesses how the strength and variation in state renewable portfolio standards affects the amount of wind power capacity states develop.