Is the Choice of renewable portfolio standards random?

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(No Transcript)
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U.S. Energy Policies

• John Stevenson
• Econ 539
• Winter 2008

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U.S. Energy Priorities

• Reduced Carbon Emissions
• Energy Independence
• Economic Growth

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Future Outlooks from 2001

• Brown et al Scenarios for a clean energy future
  2001
• Adoption of certain policies could reduce
  projected carbon emissions upwards of 30 by 2020
  without economic costs exceeding gains (Brown et
  all 2001)

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Implications for Clean Electricity

• Carbon Cap and Trade
• Increase demand for wind energy by 50
• Decrease carbon emission by 30

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What the federal govt has done

• Nearly 8 years later we have rumors of carbon
  cap-and-trade system being proposed.

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Role of the States

• Renewable Portfolio Standards (RPS)
• Reduce carbon emissions
• Reduce dependence on foreign oil
• Increase economic development

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Renewable Portfolio Standards

• Call for of state energy consumption be
  renewably generated by specific date
• E.G. Oregon requires 25 by 2025.
• 29 states have RPS with ranges between 2 (IA)
  and 33 (CA)

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Performance

• 20 state study concluded
• Carbon dioxide decreased 16 by 2020
• Electricity bill increase of 1-3

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Is the choice of renewable portfolio standards
random?
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Predictors of RPS

• Dominancy of Democratic party
• High levels of education

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Analysis

• Role of crude oil increases
• 24.00 (2000) 105.00 (2008)
• Increase demand for coal?
• Federal carbon cap may be more effective under
  these conditions
• RPS at state level is an improvement, but a
  federal carbon cap would be more effective in
  meeting national energy goals.

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Analysis

• Federal Govt Missed the Boat
• Lack of federal policy leads to state initiative
• Not all states will adopt RPS, - not a reliable
  way to meet national priorities.
• RPS and economic growth?

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References

• Brown, M. A, Levine, M. D., Short, Walter,
  Koomey, J. G., 2001. Scenarios for a clean
  energy future Energy Policy 29, 1179-1196.
• Huang, M-Y, Janaki, A. R.R, Carter, D. R.,
  Langholtz, M.H. 2007. Is the choice of renewable
  portfolio standards random? Energy Policy 35,
  5571-5575
• Palmer. K., Burtraw, D., 2005
  Cost-effectiveness of renewable electricity
  policies, Energy Economics 27 873-894.
• Rabe, B.G., 2006. The Expanding Role of U.S.
  State Renewable Portfolio Standards Pew Center
  on Global Climate Change, Arlington, VA.
  www.pewclimate.org/docUploads/ RPSReportFinal.pdf
  (Accessed March 8, 2008)