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Spectra Undergraduate Research Journal

Category

Arts, Humanities, and Social Sciences > Business > Economics

Received

July 14, 2020

Accepted

January 18, 2021

Published

February 26, 2021

Authors

Amani Chaar (AC)1*

Author Affiliations

¹Department of Economics, University of Nevada, Las Vegas

Corresponding Author

*Amani Chaar, chaar@unlv.nevada.edu

Author Contributions

AC: Contributed conceptualization, data collection, drafting of paper, formal analysis, methodology, and editing of manuscript

Data Availability Statement

The author of this article confirms that all included literature review information is fully available without restrictions.

Conflicts of Interest

The author declares that no conflicts of interest exist.

Ethical Considerations

Given that this project did not involve human or animal subjects, no IRB or IACUC approval was needed. No data are presented in this paper derived from the participants and all program elements are publicly shared.

Funding

No funding was used to conduct this research.

Abstract

Renewable Portfolio Standards (RPS) are public policies put into effect to help alleviate the harmful consequences of air pollution. Every state has a unique form of standards corresponding to their natural resources. More states have implemented the policy to increase the generation of renewable energy; however, many stand opposed to the policy in fear that it will increase electricity prices. The influence that RPS has on the price of electricity is not entirely understood. Previous literature confirms that RPS, on average, increases prices by three percent. This paper focuses on analyzing the effect of RPS on electricity rates over a longer period. Furthermore, it incorporates the effect of various forms of energy deregulation across state energy markets. Results confirm that RPS does increase electricity rates in states with regulated energy markets; however, the implementation of retail choice and wholesale market access reverses these findings and decreases electricity prices overall. Individuals across the country will be able to make a more informed decision on public policies related renewable energy with this analysis.

Keywords

Renewable energy, Sustainability, Renewable portfolio standards, Electricity prices, Deregulation, Public policy

Submission Type

Primary research article

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