An Analysis of Federal Incentives Used to Stimulate Energy Consumption

This report is one of a series of analyses of public incentives directed toward energy resources. The purpose of the series is to gain insights into the kinds and amounts of public incentives that could be required to induce 20% of the nation's energy budget from renewable resources by the year 2000. The initial analysis focused on federal incentives used to stimulate traditional energy production.

The latest update of that analysis estimates that incentives to energy production from traditional sources have cost $252 billion (1978$). During the analysis leading to that estimate, the question of incentives that stimulated consumption of energy was frequently raised. The purpose of the analysis presented here is to identify federal incentives that have increased the consumption of coal, oil, gas, and electricity.