How Effective Are US Renewable Energy Subsidies in Cutting Greenhouse Gases?
- (pp. 569-74)
AbstractThe 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.
Citation2014. "How Effective Are US Renewable Energy Subsidies in Cutting Greenhouse Gases?." American Economic Review, 104(5): 569-74. DOI: 10.1257/aer.104.5.569
- Q42 Alternative Energy Sources
- Q48 Energy: Government Policy
- Q54 Climate; Natural Disasters; Global Warming
- Q58 Environmental Economics: Government Policy