In a recent debate, the main and common issue was about the environmental policy, and it is spreading out to four states. These states include Nevada, New Jersey, Michigan and California and these four states have discussed the raising, changing and bringing a renewable portfolio standard (RPS) in past weeks.
RPS usually required the utilities which is within a state purchase, and it is a percentage of the electricity which is from qualifying renewable sources. The advocates of RPS has argued that they are vital to reducing the carbon emissions and they prevent the climate change. As about 29 states have brought these policies, they have generated a lot of research academically. The result of the research shows that RPS are expensive and they are ineffective methods to reduce the carbon emissions.
As per some environmentalists, they claim that they have to enact an RPS and it will help in lowering the electricity prices which are more reasoned studies and have shown the opposite. According to Carolyn Fischer, who is a senior fellow with the environmentally minded think tank Resources for the Future has written an influential paper in the year 2010 and it has examined the conditions which are required for the RPS to lower the prices of electricity. It can happen only with low requirements, and it is between 3 percent and 7.5 percent due to total electricity demand in the state. She said that the prices are growing very fast and when RPS will be above 10 percent then the level will be almost every state’s RPS exceeds.
The other researchers have also looked at the historical impacts which impact RPS on the electricity prices, and it uses standard statistical techniques. They have found that the electricity price increases and it ranges from 3 percent on the low end to more than 11 percent. About 11 percent increase in context for the consumers who are equivalent to pay at least one extra utility bill which is for each year.