A note on energy sourcing and Federal Tax Credits to wind investments

Felipe Gomez-Trejos

Economics Letters, 2025, vol. 252, issue C

Abstract: The Production Tax Credit (PTC) has been critical for U.S. wind power expansion. I show that replacing the PTC with a subsidy designed to optimally vary by contract type increases wind capacity deployment while significantly reducing the fiscal cost of subsidization.

Keywords: Contract; Investment; Wind; Procurement; Electricity; Subsidy; Energy (search for similar items in EconPapers)
JEL-codes: H23 L94 Q48 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:252:y:2025:i:c:s0165176525001715

DOI: 10.1016/j.econlet.2025.112334

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