FEMP providing incentives for green energy.

Energy Incentive Programs

The economic principle I’m exploring is

People generally respond to incentives in predictable ways.

My research question to help me study the economic principle is

• What incentives do individuals have to increase usage of green energy?


• What laws have been enacted to promote alternative energy?

The article/video/etc published in energy. gov titled “Energy Incentive Programs” demonstrates this economic principle because it argue that the government does provide many incentives in regards to promoting alternative energy to individuals.

First, the author demonstrates various examples of government aid to those who use green energy. FEMP a government backed organization that promotes green energy instituted by law spreads information and awards about public purpose programs in funding green energy. Second, the organization helps pay utility ratepayers, if the do use green energy. Those who tend to use green energy will receive government aid via tax breaks.

 Also, FEMP funds demand- response programs in order to provide incentives to companies who decrease energy in peak periods of production. Third, FEMP assists funding state programs in regards to advertising energy efficiency and renewable energy. Those agencies who advertise are also controlled by the state. They receive benefits such as being excluded from general tax revenues.

In my next blog post I will research: further into the incentives of green energy probably in the private sector.