Energy Efficiency Investment
Much of the equipment and production processes in America’s factories are decades old and not as efficient as modern equipment and processes in use by many of our international competitors. While some factories have been modernized, many have not. Modernizing these factories will allow them to better compete in world markets by improving product quality and reducing product costs, including savings through reduced energy use.
As the nation begins to ponder tax reform next year, we have an opportunity to create a new corporate tax structure that encourages investments that benefit society, such as energy efficiency, as well as the businesses that make these investments.
The economy took center stage at times during this year’s presidential debates, but scant attention was paid to the manufacturing sector, which remains an important driver of economic growth as well as energy use. Evidence of a resurgent, domestic manufacturing sector has strategic implications for energy policy as well as the economy.
The impact of investments in energy efficiency extends well beyond reducing energy costs or addressing the environmental impacts of energy extraction and use. These investments provide jobs for American workers and help them to support their families and communities.
UPDATE: A revised and updated version of this blog entry can be found here. This ACEEE paper was written to comment on a January, 2012 paper that Allcott and Greenstone published in the Journal of Economic Perspectives. Allcott and Greenstone have since revised their paper to respond to some of our criticisms.
This month, ACEEE hosted its 6th Annual Energy Efficiency Finance Forum in Boston, Massachusetts. The event was attended by 250 representatives from utilities, banks, venture capital firms, energy efficiency program offices, real estate firms, nonprofit organizations, consulting firms, and state and local government offices. Participants enjoyed a rich program that featured presentations centered on this year’s theme of “Getting to Scale.”
This post is the third of three on sustaining local energy efficiency efforts. The first post described trends in local implementation of energy efficiency. The second was about the challenges and successes of local energy planning around the United States.
ACEEE has collaborated with state and local stakeholders for decades, arming them with valuable, up-to-date resources on energy efficiency to facilitate effective program and policy development and deployment.
Are Energy Efficiency Investments Being Discouraged by the Way the Federal Tax Code Treats Depreciation?
Is it possible that something as mundane as the treatment of depreciation by the federal tax code could be negatively impacting investments in energy efficiency? That is the question ACEEE attempts to answer in the new white paper, Depreciation: Impacts of Tax Policy.