Working Paper: NBER ID: w19509
Authors: Richard Schmalensee
Abstract: Government subsidies have driven rapid growth in U.S. wind and solar generation. Using data on hourly outputs and prices for 25 wind and nine solar generating plants, some results of those subsidies are studied in detail: the value of these plants' outputs, the variability of output at plant and regional levels, and the variation in performance among plants and regions. Output from solar plants was about 32% more valuable on average than output from wind plants. Output variability differs substantially among plants and, on some dimensions, among regions. Policy implications of high generation when prices are negative and dramatic differences in capacity factors are discussed.
Keywords: No keywords provided
JEL Codes: D24; L94; Q42; Q5
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| government subsidies (H20) | growth of wind and solar generation (Q42) |
| type of technology (L63) | economic performance (P17) |
| subsidy schemes (H23) | generator performance (E23) |
| weather conditions (Q54) | output of generating units (L94) |