This paper analyzes the impact of the federal Production Tax Credit on the development of wind energy in the US. Following an analysis of the incentives these policies produce for wind energy generation and integration, this paper finds that, although the Production Tax Credit has proven effective at promoting some level of wind power development, the effectiveness of the Production Tax Credit varies by region and by itself is unlikely to achieve the deep levels of wind power penetration desired by some policymakers and the U.S. Department of Energy.
The Wind Energy Production Tax Credit as an Alternative to a Carbon Tax