 The Failure of Solar Tax Incentives: A Dynamic AnalysisThomas G. Sav The Energy Journal, 1986, vol. 7, issue 3, 51-66 Abstract: In recent years we have witnessed governmental attempts to acceler- ate the stock demand for energy-saving durables with financial incentives implemented through the tax mechanism. At the federal level, income tax credits for the purchase of energy-saving durable stocks were introduced through the Energy Tax Act of 1978 (Public Law 95-618). In addition, many states have enacted their own energy-saving tax incentive legislation. A substantial body of this tax legislation has been aimed at accelerating substitution of solar-produced energy for conventional, nonrenewable energy resources in the residential and commercial building sectors. Along these lines, the bulk of engineering (so-called life-cycle) cost studies accompanying much of this legislation predicted that solar tax incentives would generate widespread market penetration with little or no delay.' However, casual observation reveals that tax-induced solar energy substitutions have not been widespread. This paper presents a dynamic model of investment decisions in solar processes-a model that captures the effect of tax legislation aimed at accelerating market penetration of solar energy. Keywords: Solar energy; Tax incentives; conservation; Renewable energy (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sae:enejou:v:7:y:1986:i:3:p:51-66 DOI: 10.5547/ISSN0195-6574-EJ-Vol7-No3-4 Access Statistics for this article More articles in The Energy Journal |
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