Tax Incentives for Energy Production

Research Report

Tax Incentives for Energy Production

June 12, 2006

Abstract

There are numerous tax incentives for the oil and gas industry, many of which are designed to encourage exploration and energy production. Both the amount and the value of the incentives have increased in recent years. Economists believe it is generally bad policy to favor one industry or one type of production over another because it distorts investment and production decisions away from a more efficient allocation.

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