The Disparate Influence of State Renewable Portfolio Standards (RPS) on U.S. Renewable Electricity Generation Capacity

Several papers have used panel data analyses to examine the effectiveness of U.S. state-level Renewable Portfolio Standards (RPS) in promoting renewable capacity development, but the findings are inconclusive. Estimation of average treatment effects, however, can mask the fact that RPS policies across states are disparate and the treatment states are heterogeneous. We use the Synthetic Control Method (SCM) to conduct individual case studies of the early adopter states. Our findings indicate that the impact of RPS varied across states. We find Texas to be unique among these early adopters in that RPS in Texas has led to increased renewable capacity.