Policymakers who are eager to promote the development and adoption of environmentally sustainable technologies too often ignore certain important regulatory principles when crafting incentive programs. Some approaches to limiting and winding down sustainability incentive programs have proven to be inefficient and unjust. Too often, the winding down process only begins when lawmakers face unpredicted budgetary constraints. This article argues that state and federal lawmakers could better promote economic efficiency and equity in sustainability-oriented policy design by more consistently adhering to the principles of gradualism, adequate notice, and respect for investment-backed expectations. Using examples of deficiencies in certain net metering program caps, tax credit program sunsets, and High Occupancy Vehicle (HOV) lane access rules for electric cars, this article illustrates the importance of these core regulatory principles and advocates for a greater focus on them in the structuring of limits on sustainability incentive policies.
Courtney Moran & Casey Ball,
Structuring Better Caps for Sustainability Incentive Programs,
Idaho L. Rev.
Available at: https://digitalcommons.law.uidaho.edu/idaho-law-review/vol54/iss1/5