| Renewable portfolio standards (RPS), policies that encourage acquisition of electricity from renewable energy sources, have become popular instruments for discouraging the use of climate change inducing-fossil fuels. There has been limited research, however, that empirically evaluates their effectiveness. Using data gathered by three governmental entities -- the federal-level Energy Information Administration and two California agencies, the Employment Development Department and the Department of Finance -- this paper investigates the impact of California's RPS, one of the nation's most ambitious such policies, on in-state renewable energy generation. It finds that the California RPS did not bring about a one-time increase in generation with its inception, nor did it compel an increase in generation over time. These results raise questions as to the best way to structure RPS policies in light of growing interest in the establishment of a national RPS. |
