| The unsustainability of conventional energy sources and its environmental destructions are well-known; the sustainability of renewable energy and its environmental benefits are also well-documented. The United States in common with many other countries is increasingly focused on developing renewable energy. At first, the pursuit of this strategy in U.S. was seen more as a way to reduce dependence on oil importation. With increased awareness of environmental challenges resulting from the consumption and production of conventional energy, an additional strategy for the continued interest in renewable energy development in the United States was as a result of its potential to ameliorate environmental problems. The U.S. government are utilizing policy measures and dedicating funding to encourage the development of renewable energy technologies. Beside government policies, there are contextual factors that also affect renewable energy production.;These include, but not limited to population growth, energy demand, economic growth, and public acceptance. Given the pressing need to develop a sustainable energy, this study embarks on an outcome assessment of the nature of relationship of renewable energy policy incentives, and selected contextual factors on renewable energy production in the United States. The policy incentive evaluated in this study is the Renewable Energy Production Incentive program. The contextual factors evaluated in this study are energy consumption, population growth, employment, and poverty. Understanding the contextual factors within which policies are placed is essential to defining the most appropriate policy features. The methodological approach to the study is quantitative, using panel data from 1976 to 2007. The study tested two hypotheses using fixed effect estimation with robust standard error as a statistical model. Statistical analyses reveal several interesting results which lend support that besides policy incentives, contextual factors also affect renewable energy production. It therefore appears that to obtain a maximum renewable energy production, policymakers need to adopt a policy approach that incorporates these contextual factors. |
