Rural electric cooperatives' adoption of renewable energy technology

Samuel V Brown, Purdue University

Abstract

Many rural electric cooperatives in the United States are located near rich renewable energy resources, but only a minority have adopted renewable energy technologies. The purpose of this thesis is to identify the relevant factors that impact a rural electric cooperative's decision to adopt such technologies. The fundamentals of the electric power system are discussed, including generation, transmission, and distribution infrastructure, as well as the different types of businesses that own and operate this infrastructure. The different types of renewable resources, their associated energy conversion technologies, and their regional availability within the United States are also discussed. Transmission issues that impact renewable technology adoption are surveyed, as are existing renewable energy policies. A probit panel data model is used to identify price, policy, geographic, and other factors that impact a cooperative's decision to adopt renewable energy technologies. It is determined that both cooperative size and the price of natural gas positively impact this decision. It is also determined that there are significant regional variations in adoption probability, independent of firm characteristics, fossil fuel prices, and existing policies. To address these regional variations, a devolution of renewable energy policy may be in order.

Degree

M.S.

Advisors

Preckel, Purdue University.

Subject Area

Alternative Energy|Agricultural economics|Energy

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