Effectiveness of state climate and energy policies in reducing power-sector CO2 emissions

Abstract

States have historically been the primary drivers of climate change policy in the US, particularly with regard to emissions from power plants. States have implemented policies designed either to directly curb greenhouse gas (GHG) emissions from power plants, or to encourage energy efficiency and renewable energy growth. With the federal government withdrawing from the global climate agreement, understanding which state-level policies have successfully mitigated power-plant emissions is urgent. Past research has assessed policy effectiveness using data for periods before the adoption of many policies. We assess 17 policies using the latest data on state-level power-sector CO2 emissions. We find that policies with mandatory compliance are reducing power-plant emissions, while voluntary policies are not. Electric decoupling, mandatory GHG registry/reporting and public benefit funds are associated with the largest reduction in emissions. Mandatory GHG registry/reporting and public benefit funds are also associated with a large reduction in emissions intensity. State policies play a key role in mitigation of power-sector emissions. Analysis of 17 policies in the US shows that mandatory compliance is reducing emissions, with the largest reductions related to greenhouse gas reporting and public benefit funds.