Free

Federal Energy Incentives/Disincentives - Essay Example

Comments (0) Cite this document
Summary
The federal government is responsible for formulating national policies to regulate how energy is produced, distributed and used. Thee policies can promote as well as restrict energy consumption in the country. Federal…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.4% of users find it useful
Federal Energy Incentives/Disincentives
Read TextPreview

Extract of sample "Federal Energy Incentives/Disincentives"

Federal Energy Incentives/Disincentives Energy is a very important part of the US economy. The federal government is responsible for formulating national policies to regulate how energy is produced, distributed and used. Thee policies can promote as well as restrict energy consumption in the country. Federal incentives for the production and distribution of energy comes in the form of regulation, market support, tax incentives, direct subsidies, technology transfer, procurement mandates and demonstration programmes (Geri and McNabb, 2011). The most widely used incentive mechanism that the government uses is tax policy. The oil and gas industries have benefited from various forms of tax incentives. A case in point is the Federal tax code which includes provisions for intangible drilling and percentage depletion, which have enabled exploration and development of oil and gas. Federal tax incentives have also been used to promote the use of renewable energy in domestic and commercial entities (Metcalf 2010). Some critics argue that although the federal government may offer energy incentives, it has too much control over production and distribution. The critics could be right, considering the level of control that the government exercises over the energy sector.
Hydroelectric power has been at the center of the economic development of the United States for the longest time. However, the emergence of oil and renewable energy sources has shifted much of the federal government’s attention from hydroelectricity. One of the most visible incentives for hydroelectric energy has been the government’s involvement in market activities. These incentives include support for construction of dams and their operations. These government investments in the hydroelectric energy sub-sector have resulted in more regulated hydroelectric power production, flood control and regional development. Up to 2003, the hydroelectric power industry had enjoyed huge subsidies on the development of the energy as a result of exemption from tax on revenue (Metcalf, 2010).
Although all these incentives exist in the hydro-electricity sector, there are a number of disincentives that are quite outstanding. Due to environmental issues, the government has been forced to look for and develop alternative sources of energy that can serve the same purpose as hydroelectric power (Geri and McNabb, 2011). This has meant that the government has had to tighten its regulatory actions so as to ensure that the production of this energy does not exceed certain levels which could be harmful to the environment. Although it may seem that the government has put in place measures to ensure that there is a level playing field in the energy market, the hydro energy sub-sector is at a disadvantaged position since other energy sources attract better incentives. Oil and renewable energy sub-sectors enjoy more subsidies than hydro power generation and distribution does. Most of the tax incentives afforded to the hydro energy industry are not as helpful as they should be since the government has a mechanism of regaining its money through added taxation of hydro-electric systems. The government also exercises control on the distribution of hydroelectricity, which has meant that the industry cannot gain as much penetration in the market as other energy companies (Geri and McNabb, 2011).
Although the policy of the federal government on energy is meant to streamline the industry, the rules do not apply equally everywhere. Some of the critics who argue that the government has its foot on the gas pedal and brake at the same time have a point because the subsidies and tax incentives that are given to hydro-electric producers and distributors always go back to the government through added taxation in other areas. The government’s control of distribution also shuts out hydroelectric energy in large parts of the market place where other energy source entities are free to operate as they wish.
Work Cited
Geri, Laurence and David McNabb. Energy Policy in the U.S.: Politics, Challenges and Prospects for Change. Boca Raton, FL: Taylor & Francis, 2011. Print.
Metcalf, Gilbert. U.S. Energy Tax Policy. New York: Cambridge, 2010. Print. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Federal Energy Incentives/Disincentives Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Retrieved from https://studentshare.org/environmental-studies/1578620-federal-energy-incentivesdisincentives
(Federal Energy Incentives/Disincentives Essay Example | Topics and Well Written Essays - 500 Words)
https://studentshare.org/environmental-studies/1578620-federal-energy-incentivesdisincentives.
“Federal Energy Incentives/Disincentives Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/environmental-studies/1578620-federal-energy-incentivesdisincentives.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Federal Energy Incentives/Disincentives

Employee Motivation and Incentives

...?Employee Motivation and Incentives Explain the relation between Goal, Commitment, and Performance Both employees and managers of any type of organization must move toward common goals or objectives. Goals are mainly established depending on what the whole organization wishes to achieve in the short term process as well as in the long term one. It is important that all the personnel within the organization are aware of the objectives which they must achieve. In order to accomplished an objective or several objectives, all involved must be willing to commit themselves by working hard and doing their part as a team member of the organization. Commitment entails doing one’s respective responsibility simultaneously with the...
4 Pages(1000 words)Coursework

Employee Motivation and Incentives

...? EMPLOYEE MOTIVATION AND INCENTIVES By of Relationship between Goal, Commitment and Performance Goal is the desired result that an organization aims to achieve within a finite period while commitment is the employee's psychological attachment towards their work and the organization. Goals need to be developed after careful thought since it is very important for the employees of the organization to buy-in on the organizational goals. If the employee does not see any reason to achieve the organizational goals, then the commitment that one can expect from them, towards fulfilling these goals, is close to zero. Another factor that can inhibit commitment is that the goals of the organization are handed down to the employees...
4 Pages(1000 words)Coursework

Employee motivation and Incentives

...better when they understand the fact that their organization wants them to live a healthy life. Long term incentive plan is the fourth type of compensation. “A reward system designed to improve employees' long-term performance by providing rewards that may not be tied to the company's share price. In a typical LTIP, the employee (usually an executive) must fulfill various conditions and/or requirements that prove that he or she has contributed to increasing shareholder value.” (Long-Term Incentive Plan) Paid leave is also considered as a form of compensation and is a great boon for employees but no so great for employers, this is why there are just a few no of paid leaves that an employee is entitled to....
2 Pages(500 words)Coursework

Incentives

...? Incentives in employment sector Introduction According to Bentley McLeod, contracts have become one ofthe key elements on the employment sector especially in the current world (Para 2). Most companies have currently employed a method with the main aim to motive their workers. For instance, in U.S teachers are being awarded with promotions and other benefits as a form of motivation based on their work track records. However, some argue that such practices end up resulting to financial crisis around the globe. Basically, incentives are benefits that are offered with an aim to encourage an employer according to the work they have done. As much as incentives are meant to encourage workers...
6 Pages(1500 words)Essay

Team based incentives

...1. Do results from the survey illustrate typical complaints about teams and specifically about team incentive rewards Explain. The results from the survey illustrate typical complaints about teams and team incentive rewards. When there are team members who have not bought into the team concept, this may be indicative of several things: insufficient communication with all team members about the purpose of the team, personal differences among team members, lack of team player qualities within the individual characteristics of members, or that the work to be performed does not really necessitate building teams. A work team is a group of individuals who see themselves as a distinct entity, wherein members...
2 Pages(500 words)Essay

What steps have governments taken to solve the problem of employment since 1980 and how effective were they

...policy changes. Other studies have found that hiring subsidies are a waste of taxpayers dollars. Feldstein recommended instead the U.S. unemployment insurance system be reformed to reduce structural unemployment. Such reforms, if carefully designed, could substantially increase incentives for finding a job without imposing hardships on the truly disadvantaged. Subjecting unemployment insurance benefits to the income tax, which the United States now does, reduces disincentives for job seeking but does not reduce benefits for those too poor to pay taxes. A more radical reform would be to set a maximum weekly benefit of about $200, thereby reducing the benefit levels for those who previously had a...
12 Pages(3000 words)Essay

Financial Incentives

...Case Study Financial incentives put a value on the accomplishment made by the member of staff. It serves to encourage brilliant and capable but unenthusiastic employees thus raising their efficiency. In addition, it creates healthy competition among workers thus increasing the turnover. It motivates an employee to focus on the target set. It leads to the attachment of the individual to the company, therefore, growing their level of commitment. Moreover, it links additional productivity with added pay. The other merits of financial incentives are to serve as the machinery of attracting other expert workforce and motivating workers to put forth extra effort. However, financial incentives...
2 Pages(500 words)Essay

Investment Incentives

... Introduction: Investment incentives varies depending on the goals or objectives the government or country wish to attain. A country, therefore, offers different forms of incentives in order to meet different targets in the form of investments. Investment incentives may include regional incentives that are offered by a country in order to encourage development of various regions, for example, the rural areas. The country, therefore, may issue favorable operating tax rates and less regulatory terms to investors in the rural areas so as to encourage development of such rural regions of a country. The sectorial incentives may also be offered by a country in order to encourage or promote development of various sectors of the economy... that are...
1 Pages(250 words)Research Paper

Consumer Incentives

...Consumer Incentives The role of public policy in healthcare s constitutes setting quality and safety standards for healthcare contexts, providing guidelines for educational requirements for handling patients, and monitoring healthcare financing and delivery. The economic challenges of running a nursing home include risk and uncertainties, complexities related to insurance, the pressure to reduce costs, rapid and confusing course of technical and institutional changes, and perils caused by information asymmetries. All citizens demand healthcare services; therefore, the government intervenes by supporting healthcare facilities (Lee, 2009). The government may give economic incentives to healthcare providers through tax-free imports... Incentives...
1 Pages(250 words)Essay

Incentives and disincentives to invest in research and development

...INCENTIVES AND DISINCENTIVES TO INVEST IN RESEARCH AND DEVELOPMENT (R&D) Incentives and disincentives to invest in research and development (R&D) Introduction Innovative developments constitute the factors that have influenced the rise in people’s living standards in the contemporary society. Innovative performance constitutes the critical factors that determine a nation’s progress as well as its competitiveness in the global economy. Moreover, innovative developments assist in addressing some of the challenges that companies face, which are inclusive of the idea of increasing an organisation’s revenue (Besanko et al., 2013, p. 47). However, the application of such...
4 Pages(1000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Federal Energy Incentives/Disincentives for FREE!

Contact Us