Tuesday, April 28, 2015
David M. Schizer (Columbia) presents Energy Tax Expenditures: Worthy Goals, Competing Priorities, and Flawed Institutional Design at NYU today as part of its Tax Policy Colloquium Series hosted by Daniel Shaviro and Alan Viard:
Part I outlines the environmental, national security, and economic goals of energy tax expenditures. Part II discusses how empirical uncertainty and heterogeneity complicate efforts to pursue these objectives. Part III considers challenges that arise because of conflicts in our goals. Part IV canvasses the political economy advantages of subsidies over Pigouvian taxes, and offers suggestions about how to make Pigouvian taxes more politically palatable. Part V surveys five institutional design challenges that arise under currently law – most of which are more acute with subsidies than with Pigouvian taxes – and offers suggestions about how to mitigate them. Part VI is the conclusion.