The impact of energy conservation incentives for the industrial sector

David B. Reister

Energy, 1982, vol. 7, issue 3, 247-251

Abstract: In this paper, we present an analysis of energy conservation incentives using a simple model of energy demand in the industrial sector. The principal conclusions are: 1.(i) The largest incentive is provided by the decontrol of energy prices.2.(ii) Incentives that reduce the price of capital (tax credits, accelerated depreciation, and low interest loans) have a smaller impact on energy demand than expected increases in energy prices and are cumbersome to administer.3.(iii) If the government wishes to encourage energy conservation, the least cumbersome method is to tax energy use.4.(iv) Incentives that reduce the cost of producing energy services are counterproductive because reducing the cost of energy serivces increases the demand for energy.

Date: 1982
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:7:y:1982:i:3:p:247-251

DOI: 10.1016/0360-5442(82)90073-1

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