New evidence reveals that state-level renewable energy policies significantly shape electric utilities' incentives to lobby at the federal level during policy expirations. Analyzing lobbying records from 1998-2012, we find a striking contrast: states without supportive policies saw increased lobbying efforts by both proponents and opponents when facing potential federal program termination. This counterintuitive finding suggests state policies may reduce overall lobbying effectiveness or relevance in the absence of renewable portfolio standards (RPS). The quasi-random timing of production tax credit expirations allows for causal interpretation.
### Data & Methods
Our analysis focuses on electric utility lobbying records during the 1998-2012 period, specifically examining responses to federal renewable energy policy changes. We leverage text analysis and exploit exogenous variation in production tax credit expiration timing across states without RPS.
### Key Findings
• States lacking renewable portfolio standards (RPS) experienced a surge in federal lobbying related to the expiring production tax credit
• Both proponents and opponents of this program increased their advocacy efforts during these expirations
• Lobbying on unrelated topics remained unaffected by policy expiration timing, indicating specificity to energy issues
### Significance
These findings challenge conventional assumptions about lobbying dynamics. They suggest that supportive state policies may inadvertently reduce the returns associated with federal lobbying for renewable energy programs among electric utilities.