How Effective Are US Renewable Energy Subsidies in Cutting Greenhouse Gases?
- (pp. 569-74)
(Complimentary)
Abstract
The federal tax code provides preferential treatment for the production and use of renewable energy. We report estimates of the subsidies' effects on greenhouse gases (GHG) emissions developed in a recent National Research Council (NRC) Report. Due to lack of estimates of the impact of tax provisions on GHG emissions, new modeling studies were commissioned. The studies found, at best, a small impact of subsidies in reducing GHG emissions; in some cases, emissions increased. The NRC report also identified the need to capture the complex interactions among subsidies, pre-existing regulations, and commodity markets.Citation
Murray, Brian C., Maureen L. Cropper, Francisco C. de la Chesnaye, and John M. Reilly. 2014. "How Effective Are US Renewable Energy Subsidies in Cutting Greenhouse Gases?" American Economic Review, 104 (5): 569-74. DOI: 10.1257/aer.104.5.569Additional Materials
JEL Classification
- Q42 Alternative Energy Sources
- Q48 Energy: Government Policy
- Q54 Climate; Natural Disasters; Global Warming
- Q58 Environmental Economics: Government Policy