Justifying incentives for renewable energy in an oil gas state

摘要

During the past two decades, many renewable energy technologies have progressed dramatically and are now approaching competitiveness with conventional resources. During this same 20 year period, hydrocarbon production from major oil and gas states has generally declined. In such states, legislators often initiate significant "incentives" to remedy declining production from mature energy industries while fiercely opposing "subsidies" to promote new renewable energy development. This paper reviews a few arguments designed to convince decision makers in oil and gas states that renewable energy warrants incentives. Theses arguments concentrate on two themes: (1) that the renewable energy industry is a legitimate industry that will augment rather than threaten conventional energy industries, and (2) that new investments in renewable energy will yield comparable if not superior benefits in the areas of jobs, taxes, and economic development as equivalent new investments in conventional energy industries.