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Dedicating new real estate transfer taxes for energy efficiency: A revenue option for scaling up Green Retrofit Programs

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  • Lester, T. William

Abstract

As the labor market in the U.S. remains weak, with high unemployment and sluggish job growth, policymakers at various levels of government are looking for new ways to support job growth and investment during an increasingly tight fiscal climate. Policies that promote the “Green Economy” in general and energy efficiency in particular remain politically popular as potential win–win solutions that will create jobs and curb greenhouse gas emissions. Yet, efforts to promote energy efficiency in the residential sector through rebates and incentives alone have yet to reach critical mass. This paper outlines a policy option for state and local governments to use real estate transfer taxes to generate stronger incentives for home buyers to undertake significant retrofit projects at the time of sale. The economic impact of the proposed energy efficiency transfer tax (EETT) is then modeled for the State of North Carolina, using standard input–output techniques. Ultimately, based on housing sales figures from 2010, a new EETT of 2.5 percent on home purchases would generate a net positive increase of approximately 3485 direct construction jobs and 5900 annually total jobs for the state.

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  • Lester, T. William, 2013. "Dedicating new real estate transfer taxes for energy efficiency: A revenue option for scaling up Green Retrofit Programs," Energy Policy, Elsevier, vol. 62(C), pages 809-820.
    • Handle: RePEc:eee:enepol:v:62:y:2013:i:c:p:809-820
    DOI: 10.1016/j.enpol.2013.07.050
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    References listed on IDEAS

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    1. Villca-Pozo, Milenka & Gonzales-Bustos, Juan Pablo, 2019. "Tax incentives to modernize the energy efficiency of the housing in Spain," Energy Policy, Elsevier, vol. 128(C), pages 530-538.
    2. Vera, Sonia & Sauma, Enzo, 2015. "Does a carbon tax make sense in countries with still a high potential for energy efficiency? Comparison between the reducing-emissions effects of carbon tax and energy efficiency measures in the Chile," Energy, Elsevier, vol. 88(C), pages 478-488.
    3. Choi, Jun-Ki & Eom, Jiyong & McClory, Emma, 2018. "Economic and environmental impacts of local utility-delivered industrial energy-efficiency rebate programs," Energy Policy, Elsevier, vol. 123(C), pages 289-298.
    4. Dalia Štreimikienė & Vidas Lekavičius & Gintare Stankūnienė & Aušra Pažėraitė, 2022. "Renewable Energy Acceptance by Households: Evidence from Lithuania," Sustainability, MDPI, vol. 14(14), pages 1-17, July.

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