Renewable Electricity Policies in the U.S.: A Comparison of Renewable Portfolio Standards and Feed-in Tariffs

Thesis advisor: Frank GollopThesis advisor: James DaltonThere is a push for more electricity from renewable energy sources in the United States and around the world, but debate exists over the best policy to achieve this growth. Two common policies include renewable portfolio standards and feed-in tariffs. Using two Energy Information Administration forecasts from 2005 to 2030, this study examines the impacts of possible federal renewable portfolio standards in the United States through a benefit-costs analysis. Using the same benefit-cost analysis, a feed-in tariff policy in Germany and a unique renewables obligation in the United Kingdom are also examined and the results are compared. This study finds that only one of the four examined policies has a net benefit to society, the policy being a renewable portfolio standard requiring 25% of electricity supplied in the United States to be from renewable energy sources by the year 2025. The economic theory gives support to the superiority of renewable portfolio standards, although more study in needed on the dynamic efficiencies and other possible policy options.Thesis (BA) — Boston College, 2009.Submitted to: Boston College. College of Arts and Sciences.Discipline: College Honors Program.Discipline: Economics Honors Program.Discipline: Economics