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.
How Effective are U.S. Renewable Energy Subsidies in Cutting Greenhouse Gases?Maureen Cropper, Brian C. Murray, Francisco de la Chesnaye and John M. Reilly ,
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American Economic Review Papers and Proceedings