Wealthy Homeowners Nab Billions in Tax Credits for Energy Efficiency
August 16, 2024
E&E News
Severin Borenstein, Energy Institute Faculty Director, and Lucas Davis, Energy Institute Faculty Affiliate in E&E News. Davis shares thoughts on energy tax credits primarily benefiting wealthy homeowners, who are more likely to invest in energy-efficient upgrades, making these credits less equitable and less effective than broader measures like a carbon tax.
‘”I understand the political advantage of subsidizes,’ University of California, Berkeley, energy economist Lucas Davis said…’But in terms of changing behavior and economic efficiency, the tax approach has many advantages. When you tax carbon emissions directly people look for all kinds of ways to reduce carbon emissions, not just heat pumps, not just EVs…Maybe I buy a bike or move closer to work or don’t take as many airline flights.”‘
Read more about energy tax credits in The Financial Times and Politico
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