Clinton Administration Offers Incentives to Curb Domestic
Emissions and Maintain Growth
Domestic action. President Clinton proposed on January 31, 1998
a five-year, $6.3 billion package of tax incentives and research
to reduce emissions and address climate change. The program is
intended to show that the US can curb heat-trapping gases by conserving
energy while preserving economic growth. The approach first outlined
in October 1997 consists of three stages: 1) immediate actions
to stimulate development and use of technologies the cost of reducing
emissions; 2) review of options created by technology, leading
to detailed plans for a market-based permit-trading system for
carbon emissions; 3) implement the emissions-trading system.
The FY99 budget includes $2.7 billion over five years for raising
R&D and expanding the use of energy efficiency, renewable
energy and reduced carbon technologies. An additional $3.6 billion
would be used for tax incentives. Together these initiatives would
stimulate adoption of more efficient technologies in buildings,
industrial processes, vehicles and power generation.
Residences are responsible for about one-sixth of greenhouse
emissions. The package would give tax credits to purchasers of
highly efficient homes, would encourage efficient building equipment
and appliances and would stimulate the use of solar power including
solar roofs. For the one-third of the greenhouse gas emissions
produced by the transportation sector, the package promotes ultra
fuel-efficient vehicles by giving tax credits of $3000 or $4000
to double or triple current mileage and a funding increase for
fuel cell development, advanced direct injection diesel cycle
engines and a low-NOx methanol-fueled engine.
