This paper studies the development of renewable energy (RE) in the U.S. by examining the capacity to generate electricity from renewable sources. RE capacity exhibits a U-shaped relationship with per capita income, similar to other metrics for environmental quality (EQ). To explain this phenomenon, I consider several of the environmental Kuznets curve theories that describe the relationship between income and environmental quality (Y-EQ), including evolving property rights, increased demand for improved EQ, and changing economic composition. The results fail to provide support for the Y-EQ theories. I further consider the alternative hypothesis that increases in unemployment lead to increases in relative RE capacity, suggesting that promoting RE projects as a potential job creator is one of the main drivers of RE projects. The results imply that lagged unemployment is a significant predictor of relative RE capacity, particularly for states with a large manufacturing share of GDP.
AndreoniJ.LevinsonA. (2001). “The simple analytics of the environmental Kuznets curve.” Journal of Public Economics80 (2): 269-286. http://dx.doi.org/10.1016/S0047-2727(00)00110-9.
2.
ApergisN.PayneJ. (2010). “Renewable energy consumption and growth in Eurasia.” Energy Economics32 (6):13921397. http://dx.doi.org/10.1016/j.eneco.2010.06.001.
3.
ApergisN.PayneJ. (2011). “The renewable energy consumption-growth nexus in Central America.” Applied Energy88 (1): 343-347. http://dx.doi.org/10.1016Zj.apenergy.2010.07.013.
4.
ApergisN.PayneJ. (2012). “Renewable and non-renewable energy consumption-growth nexus: Evidence from a panel error correction model.” Energy Economics34 (3): 733-738. http://dx.doi.org/10.1016/j.eneco.2011.04.007.
5.
AslanidisN.IranzoS. (2009). “Environment and development: Is there a Kuznets curve for CO2 emissions?” Applied Economics41 (6): 803-810. http://dx.doi.org/10.1080/00036840601018994.
6.
BergmannA.ColomboS.HanleyN. (2008). “Rural versus urban preferences for renewable energy developments.” Ecological Economics65 (3): 616-625. http://dx.doi.org/10.1016/j.ecolecon.2007.08.011.
7.
BhattacharyaH.LueckD. (2009). “The role of property rights in determining the environmental quality-income relationship.” Ecological Economics68 (10): 2511-2524. http://dx.doi.org/10.1016/j.ecolecon.2009.04.023.
8.
BlazevicB. (2009). “The role of renewable energy sources in regional tourism development.” Tourism and Hospitality Management15 (1): 25-36.
9.
BollinoC. A. (2009). “The willingness to pay for renewable energy sources: The case of Italy with socio-demographic determinants.” The Energy Journal30 (2): 81-96.
10.
BurkeP. J. (2010). “Income, resources, and electricity mix.” Energy Economics32 (3): 616-626. http://dx.doi.org/10.1016/j.eneco.2010.01.012.
11.
CarleyS. (2009). “State renewable energy electricity policies: An empirical evaluation of effectiveness.” Energy Policy37 (8): 3071-3081. http://dx.doi.org/10.1016/j.enpol.2009.03.062.
12.
CarleyS. (2012). “A clean energy standard: Experience from the states.” Re-view of Policy Research29 (2): 301-307. http://dx.doi.org/10.1111/j.1541-1338.2011.00553.x.
13.
CarsonR. (2010). “The environmental Kuznets curve: Seeking empirical regularity and theoretical structure.” Review of Environmental Economics and Policy4 (1): 3-23. http://dx.doi.org/10.1093/reep/rep021.
14.
ColeM.RaynerA.BatesJ. (1997). “The environmental Kuznets curve: An empirical analysis.” Environment and Development Economics2 (04): 401-416. http://dx.doi.org/10.1017/S1355770X97000211.
15.
CropperM.GriffithsC. (1994). “The interaction of population growth and environmental quality.” The American Economic Review84 (2): 250-254.
16.
DasguptaS.LaplanteB.WangH.WheelerD. (2002). “Confronting the environmental Kuznets curve.” The Journal of Economic Perspectives16 (1): 147-168. http://dx.doi.org/10.1257/0895330027157.
17.
DelmasM. A.Montes-SanchoM. J. (2011). “U.S. state policies for renewable energy: Context and effectiveness.” Energy Policy39 (5): 2273-2288. http://dx.doi.org/10.10167j.enpol.2011.01.034.
DongC. (2012). “Feed-in tariff vs. renewable portfolio standard: An empirical test of their relative effectiveness in promoting wind capacity development.” Energy Policy42: 476-485. http://dx.doi.org/10.1016Zj.enpol.2011.12.014.
20.
DennyEllerman A.SchmalenseeRichardJoskowP. L.MonteroJ. P.BaileyE. M. (1997). Emissions trading under the U.S. Acid Rain Program: Evaluation of compliance costs and allowance market performance. Massachusetts Institute of Technology Center for Energy and Environmental Policy Research.
Energy Retailer Research Consortium (2008). Annual Baseline Assessment of Choice in Canada and the United States. Technical report, Distributed Energy Financial Group.
23.
FischerC.PreonasL. (2010). “Combining policies for renewable energy: Is the whole less than the sum of its parts?” International Review of Environmental and Resource Economics4: 51-92. http://dx.doi.org/10.1561/101.00000030.
24.
GreenR.YatchewA. (2012). “Support schemes for renewable energy: An economic analysis.” Economics of Energy and Environmental Policy1 (2): 83-98. http://dx.doi.org/10.5547/2160-5890.1.2.6.
25.
HuangM.AlavalapatiJ.CarterD.LangholtzM. (2007). “Is the choice of renewable portfolio standards random?” Energy Policy35 (11): 5571-5575. http://dx.doi.org/10.1016/j.enpol.2007.06.010.
26.
JennerS.ChanG.FrankenbergerR.GabelM. (2012). “What drives states to support renewable energy?” The Energy Journal33 (2): 1-12. http://dx.doi.org/10.5547/01956574.33.2.1.
27.
LongJ. (1993). “An econometric analysis of residential expenditures on energy conservation and renewable energy sources.” Energy Economics15 (4): 232-238. http://dx.doi.org/10.1016/0140-9883(93)90012-G.
MarquesA.FuinhasJ.MansoJ. (2011). “A quantile approach to identify factors promoting renewable energy in European countries.” Environmental and Resource Economics49(3): 351-366.
30.
MarquesA. C.FuinhasJ. A. (2012). “Are public policies towards renewables successful? Evidence from European countries.” Renewable Energy44: 109-118. http://dx.doi.org/10.1016/j.renene.2012.01.007.
31.
MenegakiA. (2011). “Growth and renewable energy in Europe: A random effect model with evidence for neutrality hypothesis.” Energy Economics33 (2): 257-263. http://dx.doi.org/10.1016/j.eneco.2010.10.004.
32.
MenzF. C.VachonS. (2006). “The effectiveness of different policy regimes for promoting wind power: Experiences from the States.” Energy Policy34 (14): 1786-1796. http://dx.doi.org/10.1016/j.enpol.2004.12.018.
33.
OliverH.VolschenkJ.SmitE. (2011). “Residential consumers in the Cape Peninsulas willingness to pay for premium priced green electricity.” Energy Policy39 (2): 544-550. http://dx.doi.org/10.1016/j.enpol.2010.10.012.
34.
PanayotouT. (1999). “The economics of environments in transition.” Environment and Development Economics4 (04): 401-412. http://dx.doi.org/10.1017/S1355770X99000261.
35.
RothmanD. (1998). “Environmental Kuznets curves—real progress or passing the buck?: A case for consumption-based approaches.” Ecological Economics25 (2): 177-194. http://dx.doi.org/10.1016/S0921-8009(97)00179-1.
36.
SadorskyP. (2009). “Renewable energy consumption and income in emerging economies.” Energy Policy37 (10): 4021-4028. http://dx.doi.org/10.1016/j.enpol.2009.05.003.
37.
SariR.EwingB. T.SoytasU. (2008). “The relationship between disaggregate energy consumption and industrial production in the United States: An ARDL approach.” Energy Economics30 (5): 2302-2313. http://dx.doi.org/10.1016/j.eneco.2007.10.002.
38.
SchmalenseeR.StokerT. M.JudsonR. A. (1998). “World carbon dioxide emissions: 1950-2050.” Review of Economics and Statistics80 (1): 15-27. http://dx.doi.org/10.1162/003465398557294.
39.
ShrimaliG.KniefelJ. (2011). “Are government policies effective in promoting deployment of renewable electricity resources?” Energy Policy39 (9): 4726-4741. http://dx.doi.org/10.1016/j.enpol.2011.06.055.
40.
SternD. (2004). “The rise and fall of the environmental Kuznets curve.” World Development32 (8): 1419-1439. http://dx.doi.org/10.1016/j.worlddev.2004.03.004.
41.
SternD.CommonM. (2001). “Is there an environmental Kuznets curve for sulfur?” Journal of Environmental Economics and Management41 (2): 162-178. http://dx.doi.org/10.1006/jeem.2000.1132.
42.
SuriV.ChapmanD. (1998). “Economic growth, trade and energy: Implications for the environmental Kuznets curve.” Ecological Economics25 (2): 195-208. http://dx.doi.org/10.1016/S0921-8009(97)00180-8.
43.
TahvonenO.SaloS. (2001). “Economic growth and transitions between renewable and nonrenewable energy resources.” European Economic Review45 (8): 1379-1398. http://dx.doi.org/10.1016/S0014-2921(00)00062-3.
44.
WeiM.PatadiaS.KammenD. (2010). “Putting renewables and energy efficiency to work: How many jobs can the clean energy industry generate in the U.S.?” Energy Policy38 (2): 919-931. http://dx.doi.org/10.1016/j.enpol.2009.10.044.
45.
WiserR.PorterK.ClemmerS. (2000). “Emerging Markets for Renewable Energy The Role of State Policies during Restructuring.” The Electricity Journal13 (1): 13-24. http://dx.doi.org/10.1016/S1040-6190(99)00101-3.
46.
YinH.PowersN. (2010). “Do state renewable portfolio standards promote in-state renewable generation.” Energy Policy38 (2): 1140-1149. http://dx.doi.org/10.1016Zj.enpol.2009.10.067.
