Evaluation of Energy Policy Instruments for the Adoption of Renewable Energy: Case of Wind Energy in the Pacific Northwest U.S.

The wide use of renewable energy technologies for generating electricity can be seen as one way of meeting environmental and climate change challenges along with a progression to a low-carbon economy. A large number of policy instruments have been formed and employed to support the adoption of renewable energy technologies in the power generation sector. However, the success of these policies in achieving their goals relies on how effective they are in satisfying their targets and thus increasing renewable energy adoption. One measurement for effectiveness of policy instruments can be their contribution to the input of the process of renewable energy adoption and their effect on satisfying regional goal. The objective of this research is evaluate the effectiveness of energy policy instruments on increasing the adoption of renewable energy by developing a comprehensive evaluation model. Criteria used in this assessment depend on five perspectives that are perceived by decision makers as important for adoption process. The decision model linked the perspectives to policy targets and various energy policy instruments. These perspectives are: economic, social, political, environmental and technical. The research implemented the hierarchical decision model (HDM) to construct a generalized policy assessment framework. Data for wind energy adoption in the Pacific Northwest region were collected as a case study and application for the model. Experts' qualitative judgments were collected and quantified using the pair-wise comparison method and the final rankings and effectiveness of policy alternatives with respect to the mission were identified. Results of this research identified economic feasibility improvement of renewable energy projects as the most influential perspective and that renewable portfolio standards and tax credits are the two most effective criteria to accomplish that. The research also applied sensitivity analysis and scenario analysis to identify the effect of regional perspectives future priority changes on determining the most effective policy for this perspective. Results showed that renewable portfolio standards and tax credits were found to be the two most effective policies among the alternatives assessed. The research model and outcome can serve as policy check tool in policy making for renewable energy development in any region. Based on the overall research findings, policymakers can apply specific policy instruments to support adoption efforts for any given scenario and regional emphasis.