The Role of State Policy in Renewable Energy Development

State policies can support renewable energy development by driving markets, providing certainty in the investment market, and incorporating the external benefits of the technologies into cost/benefit calculations. Using statistical analyses and policy design best practices, this paper quantifies the impact of state-level policies on renewable energy development in order to better understand the role of policy on development and inform policy makers on the policy mechanisms that provide maximum benefit. The results include the identification of connections between state policies and renewable energy development, as well as a discussion placing state policy efforts in context with other factors that influence the development of renewable energy (e.g. federal policy, resource availability, technology cost, public acceptance).