The United States’ most prevalent climate policies are Renewable Portfolio Standards (RPS) that mandate a specified share of electricity come from low-CO2 sources like wind and solar. Using a difference-indifferences style research design, we find that electricity prices are 11% higher seven years after RPS passage. Estimates also indicate that CO2 emissions are 8-17% lower seven years after passage, though they are sensitive to specification (unlike the price estimates). Together, the estimates suggest that the cost per abated CO2 ton ranges from $86-$211. Additionally, there is suggestive evidence that the cost per increment of mandated low-CO2 generation declined after 2010.
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