Texas Energy Policy Landscape and Analysis

April 2024
Chen Lyu**, Sam Fleckenstein**, Zach Nerod**, University of Michigan

Texas has long been a leader in energy production. Blessed with windy, wide-open plains, ample sunshine and large oil and gas deposits, Texas has attracted leading entrepreneurs and companies that continue to drive investment and politics in the state. This paper will explore how Texas policy interacts with the energy industry; while a focus will be on policies that pertain to renewable energy deployment and growth, in Texas, there can be no ignoring the influence and importance of oil, gas, and more recently, hydrogen. After providing a broad overview of the state, the paper will then touch on tax policy, land use policy, and how Texas supports energy infrastructure in the state before turning to a discussion on Texas’ policy relationship with climate change, how it has evolved, and what it means moving forward for energy in the state. Finally, the paper will analyze how this mix of policies and attitudes impacted energy development in the state, and what the most likely path forward is.