On Subsidies for Energy-Saving Durables
A number of recent governmental initiatives at both the federal and state levels have attempted to accelerate the purchase and utilization of energy-saving durables such as insulation, storm windows, wind energy equipment, and solar energy equipment. Most notably these initiatives have culminated in the enactment of various financial incentives implemented through the tax mechanism and currently include, inter alia, tax credits, tax deductions, rapid depreciation, and below market-rate loans for the purchase of energy saving durables. Although the availability and extent of state-level subsidies vary, at the federal level tax credits were introduced through the Energy Tax Act of 1978 and subsequent amendments.
Sav, G. T.
(1986). On Subsidies for Energy-Saving Durables. The American Economist, 30 (1), 56-59.