Evaluating the Energy Returns of Investment-Based Incentive Programs: The Case of Oregon's Business Energy Tax Credits
Loading...
Date
2011-09
Authors
Horan, Kevin
Journal Title
Journal ISSN
Volume Title
Publisher
University of Oregon
Abstract
Governments around the world provide financial incentives to encourage renewable energy generation and energy conservation. The primary goals of these efforts are to mitigate climate change and improve long-term energy independence by reducing reliance on fossil fuels. The consensus in the energy incentive literature is that performance-based incentives, which fund energy output, are more cost efficient than investment-based incentives, which fund capital input. This thesis uses a 30-year case study of Oregon's Business Energy Tax Credit (BETC) program to argue that investment-based energy incentives are moderately cost efficient relative to other state performance-based incentives and can be an effective driver of clean energy deployment. However, this analysis also finds that there are significant opportunities to improve the cost efficiency of investment-based energy incentive programs by targeting least cost projects. Namely, 50% of the first year kilowatt-hour electricity returns of the BETC program could have been achieved at 10% of the cost. These lessons from historical BETC spending should guide policymakers, NGO.s, and businesses who aim to make targeted use of fiscally-constrained energy incentive programs.
Description
x, 59 p.
Keywords
Public policy, Environmental studies, Health and environmental sciences, Social sciences, Cost efficiency, Effectiveness, Electricity, Energy policy, Financial incentives, Tax credits -- Oregon, Energy tax credits -- Oregon