Thermal efficiency and taxes: the residential energy conservation tax credit
National concern over the growing American dependence on foreign oil has sparked interest in efforts to increase residential energy conservation through government incentives. Many officials, including, most recently, President Carter in his energy address, have considered utilizing tax credits because they are viewed as a popular and effective means of stimulating private conservation decisions. It is argued that a residential energy conservation tax credit, as a budgetary item, would adversely affect the equity and administration of the tax system and would offer no assurance of significant energy savings in relation to the amount of lost tax revenues. Moreover, uncertainties about the effectiveness of any conservation incentive scheme make an immediate large-scale subsidy program for energy conservation investments in existing homes unwise. A gradual expansion of pilot programs that incorporate accumulated experience into policy decisions would reduce waste and increase long-term energy savings. Although it is recognized that direct assistance would share some of the problems of tax credits, a greater potential in the direct grant for influencing consumers' decisions to conserve is seen. Direct assistance could be both more efficient and easier to administer than tax credits for residential energy conservation.
- OSTI ID:
- 7045514
- Journal Information:
- Harvard Journal on Legislation; (United States), Vol. 14
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
29 ENERGY PLANNING
POLICY AND ECONOMY
ENERGY CONSERVATION
LEGISLATION
RESIDENTIAL BUILDINGS
SOLAR ENERGY
FINANCIAL INCENTIVES
ECONOMICS
ENERGY POLICY
FINANCING
GRANTS
INVESTMENT
RESEARCH PROGRAMS
RESIDENTIAL SECTOR
RETROFITTING
TAX LAWS
TAXES
BUILDINGS
ENERGY
ENERGY SOURCES
GOVERNMENT POLICIES
LAWS
RENEWABLE ENERGY SOURCES
140400* - Solar Energy- Environmental Aspects
320101 - Energy Conservation
Consumption
& Utilization- Residential Buildings- (-1987)
291000 - Energy Planning & Policy- Conservation