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How Effective Are US Renewable Energy Subsidies in Cutting Greenhouse Gases?

Author

Listed:
  • Brian C. Murray
  • Maureen L. Cropper
  • Francisco C. de la Chesnaye
  • John M. Reilly

Abstract

The federal tax code provides preferential treatment for the production and use of renewable energy. We report estimates of the subsidies' effects on greenhouse gases (GHG) emissions developed in a recent National Research Council (NRC) Report. Due to lack of estimates of the impact of tax provisions on GHG emissions, new modeling studies were commissioned. The studies found, at best, a small impact of subsidies in reducing GHG emissions; in some cases, emissions increased. The NRC report also identified the need to capture the complex interactions among subsidies, pre-existing regulations, and commodity markets.

Suggested Citation

  • Brian C. Murray & Maureen L. Cropper & Francisco C. de la Chesnaye & John M. Reilly, 2014. "How Effective Are US Renewable Energy Subsidies in Cutting Greenhouse Gases?," American Economic Review, American Economic Association, vol. 104(5), pages 569-574, May.
    • Handle: RePEc:aea:aecrev:v:104:y:2014:i:5:p:569-74
    Note: DOI: 10.1257/aer.104.5.569
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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