A literature study of renewable energy tax incentives

Abstract

The Centre for Resource Solutions (“CRS”) in the USA has performed a study on tax incentives for renewable energy. The CRS has found that tax incentives are effective, powerful and highly flexible instruments to encourage the development of renewable energy. They have further identified various types of tax incentives and various guidelines for effective tax incentives. The research question was whether the tax incentives and guidelines as identified by the CRS are internationally acceptable and whether South-Africa can consider these tax incentives and guidelines to design and implement a renewable energy tax incentive policy of an international standard in South-Africa. Chapter 1 contains the background, research question, objectives and methodology of this study. In Chapter 2 the advantages and disadvantages of each type of tax incentive, as identified by the CRS, were analysed through a literature study of international views on these tax incentives. In Chapter 3 the guidelines for effective renewable energy tax incentives, as identified by the CRS, were analysed through a literature study of international views on these tax incentives. Chapter 4 contains the conclusion that the tax incentives and guidelines as identified by the CRS are internationally acceptable and that South-Africa can consider these tax incentives and guidelines to design and implement a renewable energy tax incentive policy of an international standard in South-Africa. Copyright