TY  - JOUR
AU  - Metcalf,Gilbert E.
TI  - Using Tax Expenditures to Achieve Energy Policy Goals
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 13753
PY  - 2008
Y2  - January 2008
UR  - http://www.nber.org/papers/w13753
L1  - http://www.nber.org/papers/w13753.pdf
N1  - Author contact info:
Gilbert E. Metcalf
Room 3221
Department of the Treasury
Washington, DC 20220
1500 Pennsylvania Ave., NW
Tel: 202-622-0173
E-Mail: gilbert.metcalf@tufts.edu
AB  - Tax expenditures are a major source of support for energy related activities in the federal budget exceeding direct budget support for energy by a factor of nearly six.  Focusing on the policy goals of reducing greenhouse gas emissions and petroleum consumption, I find these tax expenditures highly cost ineffective at best and counterproductive at worse.  The tax credit for ethanol is an example of a cost ineffective subsidy.  The cost of reducing CO2 emissions through this subsidy exceeded $1,700 per ton of CO2 avoided in 2006 and the cost of reducing oil consumption over $85 per barrel.
ER  -