The Economic Impact of Renewable Energy Policies
Abstract
This essay examines the economic impact of renewable energy policy in Indiana, Texas, and Virginia. The significant decrease in natural gas price experienced in the U.S. in 2009 had a profound impact on renewable energy investment, with positive and negative results. Given the background, this essay identifies the motivations and adopts methods to analyze the effects of renewable energy policy on renewable investment using time fixed effect models in the states of Indiana, Texas, and Virginia between 2007 and 2013. Interesting policy results are found in the states with different renewable endowments. This essay suggests more efficient renewable policy means for each state.The importance of renewable energy is drawing increasing attention as governments worldwide try to correct the balance of energy sources. Renewable energy is the most efficient energy source in cutting carbon emission so it’s one of the most favored methods in mitigating climate change. In the region of energy utilization, renewable energy is also an excellent way of saving resources. The manufacture of renewable energy concerns the energy utilization of regional development in both timely and spatial distribution. In the past two centuries, by the end of 1999, the world’s energy came from the consumption of non-renewable resources such as coal, oil, natural gas, and atomic energy, and other types of energy sources like hydroelectricity and wind power. With the long-term development of society, the consumption of non-renewable resources on the Earth became tense, and people began to focus on renewable energy for the sake of guaranteeing the sustainable development of the human race. In recent years, renewable energy has developed rapidly, and each part of the world has its own respective strategies and development paces. The sharing of renewable energy globally is wide and develops a significant place in the energy development strategy.
Keywords renewable energy, economic impact, energy policy, investment analysis, carbon emissions, climate change, state strategies, sustainable development
