The Effects of State Level Energy Policy on Renewable Energy Markets

For the past few decades, state governments have attempted to steer their energy portfolios toward sources that are environmentally responsible and come at a lower cost. The two primary policies that are analyzed in this work are Renewable Portfolio Standards (RPS) and market deregulation. Because the portfolio standards and the target year are decided by individual state governments, the ambition of these policies varies from state to state. Market deregulation is typically implemented to allow market forces to play a stronger role in energy markets, and to lower costs. Both policies affect the amount of renewable energy installed for a state's electricity needs as well as the price of electricity. This work seeks to determine the effects of these policies and provides policy suggestions for future decision makers.