Mona L. Hymel (Arizona) presents The United States Experience with Energy-Based Tax Incentives: The Evidence Supporting Tax Incentives for Renewable Energy at Arizona today as part of its Faculty Research-in-Progress Series. Here is part of the abstract:

Developing sustainable markets for renewable energy technologies presents complex challenges. Financial, institutional and informational obstacles impede advancement of these technologies. Tax incentives are often utilized to assist policy makers in dealing with these challenges. Because tax incentives and subsidies generally decrease governmental revenues, understanding their costs and benefits is critical in determining policy choices. For almost 90 years the United States has granted tax incentives, direct subsidies and other support to the energy industry in an effort to enhance U.S. energy supplies. Historically, those incentives targeted only the petroleum industry. Since the late 1970s, however, Congress has enacted incentives to encourage investment in technology and production of alternative and renewable energy sources. Studies evaluating the effectiveness of these tax incentives (both for conventional energy sources and alternative energy technologies) vary in their conclusions. Drawing upon these studies, this paper appraises the use of tax incentives to stimulate alternative fuel sources, renewable and non-renewable. Ultimately, criteria must be developed to assist policy makers in designing tax incentives to promote the development of renewable fuel sources and reduce the U.S. dependence on fossil fuels.

The talk begins at 12:15 p.m. in the Sullivan Room.