State taxation policies: the problem for power plant siting. Working paper No. 45. [Pennsylvania and New Jersey]
During the past decade, the siting of energy facilities has been increasingly hampered by local community resistance. It is generally recognized that the problem of securing local acceptance to the construction and operation of power facilities emerges because socio-economic costs perceived by the host community exceed their perceived socioeconomic benefits. Specifically, while the total social benefits derived from power generation are enjoyed over a wide geographic area, it is the host community that bears the majority of the resulting economic, environmental and social costs. Currently, no satisfactory alternative exists in any state for mitigating such inequities. This paper analyzes two of the most extreme tax-reimbursement schemes currently in effect in the U.S. In Pennsylvania, existing statewide pecuniary redistribution mechanisms between utility companies and local communities contain an inherent institutional bias benefiting heavily populated metropolitan areas rather than distributing tax relief based on location of power facilities. On the other hand, New Jersey's regulations penalize those communities not hosting power facilities (either by choice or geographic or demographic restrictions) by virtually excluding these areas from participating in the enormous financial benefits associated with the construction and operation of power facilities. This paper analyzes the Pennsylvania and New Jersey experiences and addresses the issue in terms of a Pigouvian externality problem. An alternative distribution mechanism to avoid existing impediments to energy-facility siting as well as existing inequities is also presented.
- Research Organization:
- Pennsylvania State Univ., University Park (USA). Center for the Study of Environmental Policy
- OSTI ID:
- 6646096
- Report Number(s):
- NP-23395
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
POLICY AND ECONOMY
NEW JERSEY
POWER PLANTS
PENNSYLVANIA
SITE SELECTION
TAXES
COAL
COMMUNITIES
CONSTRUCTION
ECONOMIC IMPACT
ENVIRONMENTAL IMPACTS
FOSSIL-FUEL POWER PLANTS
IMPLEMENTATION
INCOME DISTRIBUTION
NUCLEAR POWER PLANTS
OPERATION
PUBLIC OPINION
RECOMMENDATIONS
SOCIO-ECONOMIC FACTORS
STATE GOVERNMENT
URBAN AREAS
CARBONACEOUS MATERIALS
CENTRAL REGION
ENERGY SOURCES
FOSSIL FUELS
FUELS
INSTITUTIONAL FACTORS
MID-ATLANTIC REGION
NORTH AMERICA
NUCLEAR FACILITIES
THERMAL POWER PLANTS
USA
296000* - Energy Planning & Policy- Electric Power
293000 - Energy Planning & Policy- Policy
Legislation
& Regulation