| In the absence of meaningful federal action, many states have adopted clean energy policies aimed at reducing carbon emissions. Among these policies is the energy efficiency resource standard (EERS), adopted by 33 states mostly in the last decade, which sets an energy consumption reduction target for some or all regulated utilities within a state. My paper examines what factors affect a state's likelihood of adopting an EERS, and whether those factors are different for EERS policies compared with other clean energy policies. The energy policy literature features many studies of clean energy policy adoption, but none have focused specifically on EERS adoption. I theorized that energy efficiency potential being relatively homogeneously distributed across states (compared to renewable energy potential) and efficiency's relative inexpensiveness as a resource would result in a unique set of factors being associated with the likelihood of EERS adoption. Specifically, I expected that three internal determinants--the presence of utility rate decoupling in a state, a state's political ideology, and the state's average retail price of residential electricity--affect a state's likelihood of adopting an EERS. To test these hypotheses, I estimated several multiple regression models using an event history analysis approach and found that citizen liberalism, level of electricity consumption, and a time counter variable were all statistically significant and positive predictors of state adoption of an EERS, all else equal. I found no association between decoupling or electricity price and EERS adoption, though in the case of the former that may be a result of insufficient data. |
