Incorporating Risk in Analysis of Tax Policies for Solar Power Investments


Abstract views: 175 / PDF downloads: 222

Authors

  • Thomas R. Harris University of Nevada, Reno

Abstract

Often changes in federal and state tax policies for solar investments are made with little if any concern of risk or variabilities in input or output prices. Tax policy analysis such as the Investment Tax Credit are often analyzed as single data point not as a range of possible net returns.  Tax policy analysis for solar investments must analyze impacts of potential federal or state tax credits that not only have the highest positive net returns under average conditions but also yield highest net returns under unfavorable conditions. This article discusses incorporation of risk for tax policy analysis and the use of Monte Carlo simulation to complete a tax policy analysis and provide a range of potential outcome from alternative policies.Keywords: Solar Energy, Solar Tax Credits, Monte Carlo SimulationJEL Classification: H25

Downloads

Download data is not yet available.

Author Biography

Thomas R. Harris, University of Nevada, Reno

Professor in the Department of Economics and Director of the University Center for Economic Development

Downloads

Published

2017-12-06

How to Cite

Harris, T. R. (2017). Incorporating Risk in Analysis of Tax Policies for Solar Power Investments. International Journal of Energy Economics and Policy, 7(6), 112–118. Retrieved from https://www.econjournals.com/index.php/ijeep/article/view/5628

Issue

Vol. 7 No. 6 (2017)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.