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Why Some Managers Expect to Benefit from Public Policies and Others Do Not

In: Cross-Sector Leadership for the Green Economy

Author

Listed:
  • Alfred Marcus

    (University of Minnesota)

  • Susan Cohen

    (University of Minnesota)

  • Kathleen Sutcliffe

    (University of Texas)

Abstract

Governments often provide assistance to firms, especially energy-efficiency and renewable-energy businesses (Marcus, Anderson, Cohen, and Sutliffe, 2010). For example, in the 1970s the U.S. federal government offered subsidies to firms that developed solar panels and tax credits to consumers who purchased these products (Marcus, 1992). There have been a host of such programs, including the 2009 Economic Stimulus Act, which allocated more than $27 billion in direct and indirect aid to energy-efficiency and renewable-energy businesses (See Table 4.1). The government, for example, has provided tax credits to firms producing wind power, enabling them to sell more products and services, or sell them sooner, than otherwise would be economically feasible. Past research suggests that managers in energy efficiency and renewable energy businesses often are the beneficiaries of government policies. By making substitute products and services less attractive, public policies such as mandated performance standards, taxes, and other programs lift public awareness and increase interest in the products and service that energy efficiency and renewable energy businesses offer (Gale & Buchholz, 1987; Russo, 2001; Sine, Haveman, & Tolbert, 2005).

Suggested Citation

  • Alfred Marcus & Susan Cohen & Kathleen Sutcliffe, 2011. "Why Some Managers Expect to Benefit from Public Policies and Others Do Not," Palgrave Macmillan Books, in: Alfred Marcus & Paul Shrivastava & Sanjay Sharma & Stefano Pogutz (ed.), Cross-Sector Leadership for the Green Economy, chapter 0, pages 53-78, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-01589-1_4
    DOI: 10.1057/9781137015891_4
    as

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