A panel data study of the effects of the federal PTC and state-level RPS policies on wind power in the United States

Numerous policies supporting greater diffusion of wind energy into the electricity portfolio of the United States have been enacted in recent years. This study is an empirical analysis of the effects of demand-pull policies such as the federal production tax credit (PTC) and the state-level renewables portfolio standards (RPS) on yearly additions to wind capacity in each state. This study finds that state-level RPS policies have been stimulative factors in the increases of yearly investments in wind capacity throughout the past decade. Additionally, an active federal PTC has been a positive influence on annual wind capacity additions during this timeframe.