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The effect of the production tax credit on wind energy production in deregulated electricity markets

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  • Roach, Travis

Abstract

This letter estimates the asymmetric influence of the production tax credit on wind energy production. I find that states with deregulated electricity markets were more responsive to the tax incentive than their regulated counterparts. Excluding any external benefits from wind production, this dissimilarity amounts to a monthly difference of up to $464,450 in federal benefits.

Suggested Citation

  • Roach, Travis, 2015. "The effect of the production tax credit on wind energy production in deregulated electricity markets," Economics Letters, Elsevier, vol. 127(C), pages 86-88.
    • Handle: RePEc:eee:ecolet:v:127:y:2015:i:c:p:86-88
    DOI: 10.1016/j.econlet.2014.12.017
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    References listed on IDEAS

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    1. Hitaj, Claudia, 2013. "Wind power development in the United States," Journal of Environmental Economics and Management, Elsevier, vol. 65(3), pages 394-410.
    2. Lee, Myoung-jae, 2005. "Micro-Econometrics for Policy, Program and Treatment Effects," OUP Catalogue, Oxford University Press, number 9780199267699, Decembrie.
    3. Brown, Jason P. & Pender, John & Wiser, Ryan & Lantz, Eric & Hoen, Ben, 2012. "Ex post analysis of economic impacts from wind power development in U.S. counties," Energy Economics, Elsevier, vol. 34(6), pages 1743-1754.
    4. Dakshina G. De Silva & Robert P. McComb & Anita R. Schiller, 2013. "Do production subsidies have a wage incidence in wind power?," Applied Economics, Taylor & Francis Journals, vol. 45(28), pages 3963-3972, October.
    5. Barradale, Merrill Jones, 2010. "Impact of public policy uncertainty on renewable energy investment: Wind power and the production tax credit," Energy Policy, Elsevier, vol. 38(12), pages 7698-7709, December.
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    Cited by:

    1. John Dorrell & Keunjae Lee, 2020. "The Cost of Wind: Negative Economic Effects of Global Wind Energy Development," Energies, MDPI, vol. 13(14), pages 1-25, July.
    2. Chang, Kai & Zeng, Yonghong & Wang, Weihong & Wu, Xin, 2019. "The effects of credit policy and financial constraints on tangible and research & development investment: Firm-level evidence from China's renewable energy industry," Energy Policy, Elsevier, vol. 130(C), pages 438-447.
    3. Xuexian Gao & Haidong Zheng & Yan Zhang & Naser Golsanami, 2019. "Tax Policy, Environmental Concern and Level of Emission Reduction," Sustainability, MDPI, vol. 11(4), pages 1-17, February.
    4. Sugimoto, Kota, 2019. "Does transmission unbundling increase wind power generation in the United States?," Energy Policy, Elsevier, vol. 125(C), pages 307-316.
    5. Jie Mao & Chunhua Wang, 2016. "Tax incentives and environmental protection: evidence from China’s taxpayer-level data," China Finance and Economic Review, Springer, vol. 4(1), pages 1-30, December.

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    More about this item

    Keywords

    Wind energy; Production tax credit; Deregulation;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • 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

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