What’s Powering Wind?The Effect of U.S. Renewable Energy Policies on Wind Capacity (1994-2008)

This paper examines on the role of renewable energy polices on wind development across the United States. My findings, using a fixed effects Tobit model with a 23-state sample, from 1994-2008, indicate that the implementation of the Federal Production Tax Credit (PTC) increases wind development, but the findings are unexpectedly not robust to sample specification. Also, state Renewables Portfolio Standards (RPS) implementation has not had a significant impact on wind capacity, but once the initial binding RPS mandate is met, added wind capacity declines. Non-renewable fuel prices also influenced wind capacity additions, particularly coal and natural gas prices.