Electricity Restructuring and Tax-Exempt Bonds: Economic Analysis of Legislative Proposals
Description:
Tax-exempt bonds reduce public power's interest cost on debt and enable it to lower the price of electricity. This subsidy makes taxpayers better off only if the private market fails to provide the correct amount of electricity. In general, the private market can provide the correct amount of electricity; in those cases when it can not, the tax-exempt bond subsidy is unlikely to correct the problem. Tax-exempt bond legislation has been consistent with this perspective that an interest subsidy f…
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Date:
January 20, 2000
Creator:
Zimmerman, Dennis
Item Type:
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Partner:
UNT Libraries Government Documents Department