The most prevalent climate policies in the U.S. are Renewable Portfolio Standards (RPS), which mandate a specified share of electricity come from sources such as wind and solar. Using a comprehensive data set and a difference-in-differences style research design, we find that electricity prices are 11% higher seven years after RPS passage and carbon emissions are 11-24% lower. Point estimates suggest that the cost per ton of CO2 abatement ranges from $80-$210 in preferred specifications. We also find suggestive evidence that the cost of each increment of mandated renewable generation has declined over time as the costs of renewable energy sources have fallen.
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