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Renewable Portfolio Standards: Colorado

The Institute of Political Economy at Utah State University has produced a report on the costs of Renewable Portfolio Standards (RPS) in Colorado.  Currently, the U.S. has no federal mandate for “renewable” power production. Instead, a majority of states, including Colorado, have created their own state laws that mandate a certain percentage of their statewide electricity be provided by various renewable sources. RPS legislation ignores market signals and forces ratepayers and utilities to use more expensive electricity from favored sources. The IPE analysis shows how the states RPS efforts have impacted the Colorado economy.

View Report

Common Questions about Renewable Portfolio Standards (RPS)

March 10, 2015

Q1. What is a renewable portfolio standard?

Simply put, an RPS is a state law that mandates a certain percentage of statewide electricity be provided by various government-subsidized, alternative sources of energy production – also known as “renewables.” Many states, like Kansas, North Carolina, Ohio, Colorado and West Virgina have created their own mandate.  Most of these laws require that states attain TARGET percentages of electricity that must be utilized by a certain date.

Q2. Why research renewable portfolio standards (RPS)?

Strata, in conjunction with Utah State University Institute of Political Economy (IPE), does research on a variety of subjects related to energy, environmental and land topics. A number of states have recently implemented their own RPS, which uses a combination of mandates and subsidies to promote renewable energy resources. Strata’s  study looks at real costs and the impact of economic incentives within the states where RPS has been implemented. We examine the impact on consumers and the prices they pay for energy, the impact on jobs, and other economic consequences of these  mandated standards. Our academic focus and standard is to examine a spectrum of economic factors and provide information based on verifiable academic data. We also have ongoing research on a variety of energy sources, including coal, wind, solar, bio-mass, natural gas, and others.

Q3. Where do you find data to use in your research?

Strata’s RPS study is an academic, peer-reviewed research report intended for public consumption. The bulk of data for our RPS analysis comes from the federal Energy Information Administration (EIA), which is considered the most reliable data publicly available.

Q4. How is your research funded?

Strata receives funding from a variety of sources including individuals, foundations, corporations, and GOVERNMENT GRANTS. It is our mission to explore the issues with a strict focus on empirical, honest academic research of the highest quality.

Q5. What is your publication process?

Utah State University’s Institute of Political Economy develops questions and ideas that are relevant to the public and policymakers. These questions and ideas are tested according to academic rigor using both time-tested and innovative methodologies. In order to achieve the greatest accuracy and insight, the methods are peer-reviewed and fact CHECKED for accuracy. Our research is intended to be timely and responsive to current issues and trends.

Q6. What are the major takeaways of the RPS studies?

Strata’s RPs findings utilize an innovative method of analysis originally developed by the Federal Reserve BANK of Philadelphia. Through econometric analysis and modeling, the methodology isolates the effects of policy mandates like RPS and outputs general impacts. Our findings show that states with RPS have a significantly higher set of negative economic impacts than states without RPS. Specifically, our research shows that across RPS states, industrial production (measured by electricity sales) is greater than a 13% decline. Additionally, real personal INCOME declines in RPS states by almost 4 percent. For a typical household, this translates to about $4,000 per family in Kansas and slightly more than $3,800 in North Carolina in 2013 alone. As a result, our analysis shows that Kansas has lost over 5,500 jobs and North Carolina has lost 23,769 jobs as a result of RPS mandates to date.

Q7. What is the Institute of Political Economy (IPE)?

Originally founded by Professor Randy Simmons at Utah State University, The Institute of Political Economy is a think-tank and policy analysis center.  IPE has grown to include several scholars interested the intersections between free markets, natural resources, public lands, and energy. Scholars also working with IPE include Dr. Chris Fawson, Dr. Ryan Yonk, and a variety of other professors and experts with expertise in our core areas.

Q8. What is Strata Policy?

At Strata, our mission is to help people everywhere make informed decisions about issues that impact the freedom to live their lives. We work to achieve more prosperous and free societies by affecting a change in the climate of ideas. We do this by conducting robust research on energy and environmental issues, informing policy makers, citizens and civic leaders, and by mentoring high-achieving students to become future decision makers. Strata is located in Logan, Utah. We draw from the collective academic strength and ideas from the faculty and students at Utah State University and a strong network of academics and professionals throughout the world.


Renewable Portfolio Standards: Colorado

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The Institute of Political Economy at Utah State University has produced a report on the costs of Renewable Portfolio Standards (RPS) in North Carolina.  Currently, the U.S. has no federal mandate for “renewable” power production. Instead, a majority of states, including North Carolina, have created their own state laws that mandate a certain percentage of their statewide electricity be provided by various renewable sources. RPS legislation ignores market signals and forces ratepayers and utilities to use more expensive electricity from favored sources. The IPE analysis shows how the states RPS efforts have impacted the North Carolina economy.

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View Report

 

Common Questions about Renewable Portfolio Standards (RPS)

March 10, 2015

Q1. What is a renewable portfolio standard?

Simply put, an RPS is a state law that mandates a certain percentage of statewide electricity be provided by various government-subsidized, alternative sources of energy production – also known as “renewables.” Many states, like Kansas, North Carolina, Ohio, Colorado and West Virgina have created their own mandate.  Most of these laws require that states attain target percentages of electricity that must be utilized by a certain date.

Q2. Why research renewable portfolio standards (RPS)?

Strata, in conjunction with Utah State University Institute of Political Economy (IPE), does research on a variety of subjects related to energy, environmental and land topics. A number of states have recently implemented their own RPS, which uses a combination of mandates and subsidies to promote renewable energy resources. Strata’s  study looks at real costs and the impact of economic incentives within the states where RPS has been implemented. We examine the impact on consumers and the prices they pay for energy, the impact on jobs, and other economic consequences of these  mandated standards. Our academic focus and standard is to examine a spectrum of economic factors and provide information based on verifiable academic data. We also have ongoing research on a variety of energy sources, including coal, wind, solar, bio-mass, natural gas, and others.

Q3. Where do you find data to use in your research?

Strata’s RPS study is an academic, peer-reviewed research report intended for public consumption. The bulk of data for our RPS analysis comes from the federal Energy Information Administration (EIA), which is considered the most reliable data publicly available.

Q4. How is your research funded?

Strata receives funding from a variety of sources including individuals, foundations, corporations, and government grants. It is our mission to explore the issues with a strict focus on empirical, honest academic research of the highest quality.

Q5. What is your publication process?

Utah State University’s Institute of Political Economy develops questions and ideas that are relevant to the public and policymakers. These questions and ideas are tested according to academic rigor using both time-tested and innovative methodologies. In order to achieve the greatest accuracy and insight, the methods are peer-reviewed and fact checked for accuracy. Our research is intended to be timely and responsive to current issues and trends.

Q6. What are the major takeaways of the RPS studies?

Strata’s RPs findings utilize an innovative method of analysis originally developed by the Federal Reserve Bank of Philadelphia. Through econometric analysis and modeling, the methodology isolates the effects of policy mandates like RPS and outputs general impacts. Our findings show that states with RPS have a significantly higher set of negative economic impacts than states without RPS. Specifically, our research shows that across RPS states, industrial production (measured by electricity sales) is greater than a 13% decline. Additionally, real personal income declines in RPS states by almost 4 percent. For a typical household, this translates to about $4,000 per family in Kansas and slightly more than $3,800 in North Carolina in 2013 alone. As a result, our analysis shows that Kansas has lost over 5,500 jobs and North Carolina has lost 23,769 jobs as a result of RPS mandates to date.

Q7. What is the Institute of Political Economy (IPE)?

Originally founded by Professor Randy Simmons at Utah State University, The Institute of Political Economy is a think-tank and policy analysis center.  IPE has grown to include several scholars interested the intersections between free markets, natural resources, public lands, and energy. Scholars also working with IPE include Dr. Chris Fawson, Dr. Ryan Yonk, and a variety of other professors and experts with expertise in our core areas.

Q8. What is Strata Policy?

At Strata, our mission is to help people everywhere make informed decisions about issues that impact the freedom to live their lives. We work to achieve more prosperous and free societies by affecting a change in the climate of ideas. We do this by conducting robust research on energy and environmental issues, informing policy makers, citizens and civic leaders, and by mentoring high-achieving students to become future decision makers. Strata is located in Logan, Utah. We draw from the collective academic strength and ideas from the faculty and students at Utah State University and a strong network of academics and professionals throughout the world.

 


Renewable Portfolio Standards: Colorado

IPE

The Institute of Political Economy at Utah State University has produced a report on the costs of Renewable Portfolio Standards (RPS) in Kansas.  Currently, the U.S. has no federal mandate for “renewable” power production. Instead, a majority of states, including Kansas, have created their own state laws that mandate a certain percentage of their statewide electricity be provided by various renewable sources. RPS legislation ignores market signals and forces ratepayers and utilities to use more expensive electricity from favored sources. The IPE analysis shows how the states RPS efforts have impacted the Kansas economy.

Read the full report here:

Renewable Portfolio Standards


Renewable Portfolio Standards: Colorado

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