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Understanding local adoption of tax credits to promote solar-thermal energy: Spanish municipalities' case

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  • González-Limón, José Manuel
  • Pablo-Romero, María del P.
  • Sánchez-Braza, Antonio

Abstract

Spanish local governments may offer, in accordance with Royal Decree 2/2004, tax credits up to 50% in Real Estate Tax for those with installed solar powered thermal or electrical energy systems. This paper analyzes by logistic regression estimation which factors influence the decision of governments to implement this tax credit. Factors included as explanatory variables are related to the characteristics of municipalities, fiscal stress, environmental stress, the environmentally friendly nature of municipalities, the neighboring effect, and economic motivations. Results show that municipalities applying these measures are mostly large in size, with high solar potential, with predominantly collective-housing buildings, with low fiscal stress, mainly rural, environmentally friendly, surrounded by municipalities implementing similar measures and with higher unemployment rates.

Suggested Citation

  • González-Limón, José Manuel & Pablo-Romero, María del P. & Sánchez-Braza, Antonio, 2013. "Understanding local adoption of tax credits to promote solar-thermal energy: Spanish municipalities' case," Energy, Elsevier, vol. 62(C), pages 277-284.
    • Handle: RePEc:eee:energy:v:62:y:2013:i:c:p:277-284
    DOI: 10.1016/j.energy.2013.09.051
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    Cited by:

    1. Pablo-Romero, María del P. & Pozo-Barajas, Rafael & Sánchez-Braza, Antonio, 2015. "Understanding local CO2 emissions reduction targets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 48(C), pages 347-355.
    2. Shazmin, S.A.A. & Sipan, I. & Sapri, M. & Ali, H.M. & Raji, F., 2017. "Property tax assessment incentive for green building: Energy saving based-model," Energy, Elsevier, vol. 122(C), pages 329-339.
    3. Chen, Zi-yue & Nie, Pu-yan, 2016. "Effects of carbon tax on social welfare: A case study of China," Applied Energy, Elsevier, vol. 183(C), pages 1607-1615.
    4. Sánchez-Braza, Antonio & Cansino, José M. & Lerma, Enrique, 2014. "Main drivers for local tax incentives to promote electric vehicles: The Spanish case," Transport Policy, Elsevier, vol. 36(C), pages 1-9.
    5. Yi, Hongtao, 2014. "Green businesses in a clean energy economy: Analyzing drivers of green business growth in U.S. states," Energy, Elsevier, vol. 68(C), pages 922-929.
    6. Pablo-Romero, María del P. & Pozo-Barajas, Rafael & Sánchez-Braza, Antonio, 2016. "Analyzing the effects of Energy Action Plans on electricity consumption in Covenant of Mayors signatory municipalities in Andalusia," Energy Policy, Elsevier, vol. 99(C), pages 12-26.
    7. Shazmin, S.A.A. & Sipan, I. & Sapri, M., 2016. "Property tax assessment incentives for green building: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 536-548.
    8. Maren Springsklee & Fabian Scheller, 2022. "Exploring non-residential technology adoption: an empirical analysis of factors associated with the adoption of photovoltaic systems by municipal authorities in Germany," Papers 2212.05281, arXiv.org.
    9. Heiskanen, Eva & Matschoss, Kaisa, 2017. "Understanding the uneven diffusion of building-scale renewable energy systems: A review of household, local and country level factors in diverse European countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 580-591.

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    More about this item

    Keywords

    Urban sustainability; Local policy implementation; Real estate tax incentives; Solar thermal energy;
    All these keywords.

    JEL classification:

    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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