Green Electricity Market Development in the United States: Policy Analysis and Case Studies

Abstract

This paper reviews green electricity development in the United States, focusing on policies that have been enacted to promote green electricity. Green power is a term that refers to electricity generated from particular renewable energy sources including wind and solar power, geothermal, low-impact hydropower, and certain forms of biomass. While there has been interest in promoting the use of renewable energy sources for a number of years, the United States currently relies heavily on nonrenewable fossil fuels for energy. The paper reviews the principal energy resources used for electricity production, considers the changing regulatory environment for the electricity industry, and describes government policies that have been used to promote green electricity in the United States. Important factors that have influenced the development of green electricity markets are discussed, including underlying economic issues, government policy measures, the regulatory environment, external costs and subsidies, and other factors.