Emory Topicality

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TOPICALITY – ENDI topicality – endi..........................................................................................................................................................................1 increase means to make greater..................................................................................................................................................2 increase means net increase / requires pre-existence..................................................................................................................3 increase requires pre-existence...................................................................................................................................................4 increase doesn’t require pre-existence........................................................................................................................................5 increase means progressive growth............................................................................................................................................6 alternative energy excludes nuclear power and fossil fuels 1nc.................................................................................................7 alternative energy excludes fossil fuels and nuclear power.......................................................................................................8 2nc – their interpretation unlimits..............................................................................................................................................9 at: energy policy act of 2005 includes nuclear power as alternative energy............................................................................10 alternative energy is renewable energy – excludes single-use resources.................................................................................11 alternative energy is non-conventional energy.........................................................................................................................12 alternative energy means generating energy in ways that don’t hurt the environment............................................................13 alternative energy is distinct from renewable energy...............................................................................................................14 alternative energy excludes fossil fuels....................................................................................................................................15 alternative energy includes nuclear power...............................................................................................................................16 1nc – incentives exclude regulations........................................................................................................................................17 incentives are positive..............................................................................................................................................................18 incentives are distinct from tax credits.....................................................................................................................................19 incentives are distinct from bans..............................................................................................................................................20 incentives must have material effect........................................................................................................................................21 1nc - incentives must be linked to a particular outcome..........................................................................................................22 2nc – incentives must be linked to a specific policy adjustment..............................................................................................23 2nc – incentives must be linked to a specific policy adjustment..............................................................................................24 2nc - incentives require the “but for” test.................................................................................................................................25 at: counterinterpretation – incentives motivate action / incentives reflect market responses..................................................26 at: counterinterpretation – incentives motivate action..............................................................................................................27 incentives require negotiations external to the federal government.........................................................................................28 incentives are policies that incite action...................................................................................................................................29 Incentive allows goals in addition to alternative energy..........................................................................................................30 incentives are positive or negative............................................................................................................................................31 incentives are positive or negative............................................................................................................................................32 incentives are positive or negative............................................................................................................................................33 incentives are positive or negative............................................................................................................................................34 list of “alternative energy incentives”......................................................................................................................................35 list of “alternative energy incentives”......................................................................................................................................36 incentives include market mechanisms....................................................................................................................................38

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INCREASE MEANS TO MAKE GREATER Increase means to become larger or greater in quantity Encarta Online Dictionary. 2006. ("Increase." .) in·crease [ in krss ] transitive and intransitive verb (past and past participle in·creased, present participle in·creas·ing, 3rd person present singular in·creas·es)Definition: make or become larger or greater: to become, or make something become, larger in number, quantity, or degree noun (plural in·creas·es) Increase means to get progressively bigger Merriam-Websters Dictionary Online, 2006. (“Increase.” .) Inflected Form(s): in·creased; in·creas·ing Etymology: Middle English encresen, from Anglo-French encreistre, from Latin increscere, from in- + crescere to grow -more at CRESCENT intransitive verb 1 : to become progressively greater (as in size, amount, number, or intensity) 2 : to multiply by the production of young transitive verb 1 : to make greater : AUGMENT 2 obsolete : Increase means to make things larger numerically Cambridge Dictionary Online, 2007. (“Increase.” ) increase Show phonetics verb [I or T] to (make something) become larger in amount or size: Incidents of armed robbery have increased over the last few years. The cost of the project has increased dramatically/significantly since it began. Gradually increase the temperature to boiling point. Increased/Increasing efforts are being made to end the dispute. Compare decrease. Increase does not mean to decrease Websters Dictionary. 1913 ("Increase." .) In*crease" (?), v. i. To become greater or more in size, quantity, number, degree, value, intensity, power, authority, reputation, wealth; to grow; to augment; to advance; -- opposed to decrease. Increase means to make greater Random House Dictionary, 1987 Increase –v.t. 1. To make greater, as in number, size, strength, or quality; augment; add to: to increase taxes. –v.t. 2. To become greater, as in number, size, strength, or quality: Sales of automobiles increased last year.

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INCREASE MEANS NET INCREASE / REQUIRES PRE-EXISTENCE Increase must be a net increase Rogers, 05 (Judge, STATE OF NEW YORK, ET AL., PETITIONERS v. U.S. ENVIRONMENTAL PROTECTION AGENCY, RESPONDENT, NSR MANUFACTURERS ROUNDTABLE, ET AL., INTERVENORS, 2005 U.S. App. LEXIS 12378, **; 60 ERC (BNA) 1791, 6/24, lexis) [**48] Statutory Interpretation. HN16While the CAA defines a "modification" as any physical or operational change that "increases" emissions, it is silent on how to calculate such "increases" in emissions. 42 U.S.C. § 7411(a)(4). According to government petitioners, the lack of a statutory definition does not render the term "increases" ambiguous, but merely compels the court to give the term its "ordinary meaning." See Engine Mfrs.Ass'nv.S.Coast AirQualityMgmt.Dist., 541 U.S. 246, 124 S. Ct. 1756, 1761, 158 L. Ed. 2d 529(2004); Bluewater Network, 370 F.3d at 13; Am. Fed'n of Gov't Employees v. Glickman, 342 U.S. App. D.C. 7, 215 F.3d 7, 10 [*23] (D.C. Cir. 2000). Relying on two "real world" analogies, government petitioners contend that the ordinary meaning of "increases" requires the baseline to be calculated from a period immediately preceding the change. They maintain, for example, that in determining whether a high-pressure weather system "increases" the local temperature, the relevant baseline is the temperature immediately preceding the arrival of the weather system, not the temperature five or ten years ago. Similarly, [**49] in determining whether a new engine "increases" the value of a car, the relevant baseline is the value of the car immediately preceding the replacement of the engine, not the value of the car five or ten years ago when the engine was in perfect condition. Increase requires evidence of the preexisting condition Ripple, 87 (Circuit Judge, Emmlee K. Cameron, Plaintiff-Appellant, v. Frances Slocum Bank & Trust Company, State Automobile Insurance Association, and Glassley Agency of Whitley, Indiana, Defendants-Appellees, 824 F.2d 570; 1987 U.S. App. LEXIS 9816, 9/24, lexis) Also related to the waiver issue is appellees' defense relying on a provision of the insurance policy that suspends coverage where the risk is increased by any means within the knowledge or control of the insured. However, the term "increase" connotes change. To show change, appellees would have been required to present evidence of the condition of the building at the time the policy was issued. See 5 J. Appleman & J. Appleman, Insurance Law and Practice, § 2941 at 4-5 (1970). Because no such evidence was presented, this court cannot determine, on this record, whether the risk has, in fact, been increased. Indeed, the answer to this question may depend on Mr. Glassley's knowledge of the condition of the building at the time the policy was issued, see 17 J. Appleman & J. Appleman, Insurance Law and Practice, § 9602 at 515-16 (1981), since the fundamental issue is whether the appellees contemplated insuring the risk which incurred the loss.

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INCREASE REQUIRES PRE-EXISTENCE Increase requires pre-existence Buckley et al, 06 - attorney (Jeremiah, Amicus Curiae Brief, Safeco Ins. Co. of America et al v. Charles Burr et al, http://supreme.lp.findlaw.com/supreme_court/briefs/06-84/06-84.mer.ami.mica.pdf) First, the court said that the ordinary meaning of the word “increase” is “to make something greater,” which it believed should not “be limited to cases in which a company raises the rate that an individual has previously been charged.” 435 F.3d at 1091. Yet the definition offered by the Ninth Circuit compels the opposite conclusion. Because “increase” means “to make something greater,” there must necessarily have been an existing premium, to which Edo’s actual premium may be compared, to determine whether an “increase” occurred. Congress could have provided that “ad-verse action” in the insurance context means charging an amount greater than the optimal premium, but instead chose to define adverse action in terms of an “increase.” That def-initional choice must be respected, not ignored. See Colautti v. Franklin, 439 U.S. 379, 392-93 n.10 (1979) (“[a] defin-ition which declares what a term ‘means’ . . . excludes any meaning that is not stated”). Next, the Ninth Circuit reasoned that because the Insurance Prong includes the words “existing or applied for,” Congress intended that an “increase in any charge” for insurance must “apply to all insurance transactions – from an initial policy of insurance to a renewal of a long-held policy.” 435 F.3d at 1091. This interpretation reads the words “exist-ing or applied for” in isolation. Other types of adverse action described in the Insurance Prong apply only to situations where a consumer had an existing policy of insurance, such as a “cancellation,” “reduction,” or “change” in insurance. Each of these forms of adverse action presupposes an already-existing policy, and under usual canons of statutory construction the term “increase” also should be construed to apply to increases of an already-existing policy. See Hibbs v. Winn, 542 U.S. 88, 101 (2004) (“a phrase gathers meaning from the words around it”) (citation omitted). Increase requires pre-existence Brown, 03 – US Federal Judge for the UNITED STATES DISTRICT COURT FOR THE DISTRICT OF OREGON (ELENA MARK and PAUL GUSTAFSON, Plaintiffs, v. VALLEY INSURANCE COMPANY and VALLEY PROPERTY AND CASUALTY, Defendants, 7/17, lexis) FCRA does not define the term "increase." The plain and ordinary meaning of the verb "to increase" is to make something greater or larger. 4 Merriam-Webster's [**22] Collegiate Dictionary 589 (10th ed. 1998). The "something" that is increased in the statute is the "charge for any insurance." The plain and common meaning of the noun "charge" is "the price demanded for something." Id. at 192. Thus, the statute plainly means an insurer takes adverse action if the insurer makes greater (i.e., larger) the price demanded for insurance. An insurer cannot "make greater" something that did not exist previously. The statutory definition of adverse action, therefore, clearly anticipates an insurer must have made an initial charge or demand for payment before the insurer can increase that charge. In other words, an insurer cannot increase the charge for insurance unless the insurer previously set and demanded payment of the premium for that insured's insurance [**23] coverage at a lower price.

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INCREASE DOESN’T REQUIRE PRE-EXISTENCE Increase doesn’t require pre-existence Reinhardt, 05 – U.S. Judge for the UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT (Stephen, JASON RAY REYNOLDS; MATTHEW RAUSCH, Plaintiffs-Appellants, v. HARTFORD FINANCIAL SERVICES GROUP, INC.; HARTFORD FIRE INSURANCE COMPANY, Defendants-Appellees., lexis) Specifically, we must decide whether charging a higher price for initial insurance than the insured would otherwise have been charged because of information in a consumer credit report constitutes an "increase in any charge" within the meaning of FCRA. First, we examine the definitions of "increase" and "charge." Hartford Fire contends that, limited to their ordinary definitions, these words apply only when a consumer has previously been charged for insurance and that charge has thereafter been increased by the insurer. The phrase, "has previously been charged," as used by Hartford, refers not only to a rate that the consumer has previously paid for insurance but also to a rate that the consumer has previously been quoted, even if that rate was increased [**23] before the consumer made any payment. Reynolds disagrees, asserting that, under [*1091] the ordinary definition of the term, an increase in a charge also occurs whenever an insurer charges a higher rate than it would otherwise have charged because of any factor--such as adverse credit information, age, or driving record 8 --regardless of whether the customer was previously charged some other rate. According to Reynolds, he was charged an increased rate because of his credit rating when he was compelled to pay a rate higher than the premium rate because he failed to obtain a high insurance score. Thus, he argues, the definitions of "increase" and "charge" encompass the insurance companies' practice. Reynolds is correct. “Increase" means to make something greater. See, e.g., OXFORD ENGLISH DICTIONARY (2d ed. 1989) ("The action, process, or fact of becoming or making greater; augmentation, growth, enlargement, extension."); WEBSTER'S NEW WORLD DICTIONARY OF AMERICAN ENGLISH (3d college ed. 1988) (defining "increase" as "growth, enlargement, etc[.]"). "Charge" means the price demanded for goods or services. See, e.g., OXFORD ENGLISH DICTIONARY (2d ed. 1989) ("The price required or demanded for service rendered, or (less usually) for goods supplied."); WEBSTER'S NEW WORLD DICTIONARY OF AMERICAN ENGLISH (3d college ed. 1988) ("The cost or price of an article, service, etc."). Nothing in the definition of these words implies that the term "increase in any charge for" should be limited to cases in which a company raises the rate that an individual has previously been charged.

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INCREASE MEANS PROGRESSIVE GROWTH Increase means progressive growth Philips, 02 - UNITED STATES BANKRUPTCY JUDGE (Louis, IN RE LAWRENCE D. GOLDBERG, DEBTOR; DWAYNE M. MURRAY, TRUSTEE, PLAINTIFF VERSUS MAE M. STACY TRUST AND F. EUGENE RICHARDSON, DEFENDANTS, 5/1, lexis) (emphasis in the original) In determining the plain meaning of the phrase "increases the obligor's insolvency," the Court initially notes that this phrase makes no reference whatsoever [**50] to a "reasonably equivalent value" test 26 or even to the "fair consideration" test of the Section 3 of the UFCA. 27 Instead, Article 2036 of the Civil Code merely uses the word "increases," and the absence of "reasonably equivalent value" language or "fair consideration" language rings loudly in the Court's judicial ear. Accordingly, the Court will focus on the plain meaning of the term "increases." Taking note from one of the dictionaries of choice of the United States Supreme Court, 28 the Court finds that the definition of the word "increase" in Webster's Ninth New Collegiate Dictionary reads as follows: [*270] To become progressively greater (as in size, amount, number, or intensity). . . . to make greater: AUGMENT. . . . INCREASE, ENLARGE, AUGMENT, MULTIPLY mean to make or become greater. INCREASE used intransitively implies progressive growth in size, amount, intensity; used transitively it may imply simple not necessarily progressive addition. . . the act or process of increasing: as . . . addition or enlargement in size, extent, quantity. Webster's Ninth New Collegiate Dictionary 611 (1990) (emphasis added). As Webster's Dictionary states, the word "increase" means a progressive growth, that is, an incremental [**52] growth. Such progressive and incremental growth implies that when Article 2036 was drafted, the codifiers used the simple and easily-understood word "increase" because they meant to imply a "dollar-for-dollar" increase in the obligor's insolvency, rather than a "reasonably equivalent value" increase. Otherwise, the codifiers would not have chosen to use the word "increase" with no obvious limitation on its meaning. Moreover, since Article 2036 was crafted in 1984, well after the UFCA, which was enacted in 1918, the drafters of Article 2036 must have been well aware of the "fair consideration" requirement in Section 3 of the UFCA, and chose not to adopt such a limitation. Therefore, the Court may reasonably conclude that HN19Go to this Headnote in the case.the plain meaning of "increases the obligor's insolvency" means a "dollar-for-dollar," incremental growth, rather than insolvency as measured by a "reasonably equivalent value" standard. As of this stopping place, the Court has performed its task under the Louisiana Civil Code: to ferret out the plain meaning of Article 2036 of the Louisiana Civil Code from the words of the article, itself, if possible. However, the Court will resort to other modes of statutory construction [**53] in support of its "plain meaning" analysis, primarily to assure ourselves that the apparently groundless arguments of the defendants really are so.. Positing for argument purposes only (of course) that the phrase "increases the obligor's insolvency" is susceptible of more than one meaning (i.e., a "reasonably equivalent value" meaning), analysis of the purpose of the Louisiana revocatory action and of its legislative history is now offered.

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ALTERNATIVE ENERGY EXCLUDES NUCLEAR POWER AND FOSSIL FUELS 1NC A. Interpretation - Alternative energy excludes nuclear and all fossil fuels Simon, 07 – professor of political science at the University of Nevada, Reno (Christopher, Alternative energy: political, economic, and social feasibility, p. 39-40) The federal definition of alternative energy is best summarized by Title 26, chapter 79, §7701 of the revised U.S. Code: “the term ‘alternative energy facility’ means a facility for producing electrical or thermal energy if the primary energy source for the facility is not oil, natural gas, coal, or nuclear power.” The primary purpose of this definition relates to the issuance of tax credits to “alternative energy facility[ies],” which meet certain standards as defined in Title 26, chapter 1, §48 “Energy Credit.” Tax credits are one method by which the federal government encourages the private sector to make certain economic choices; in the case of energy policy, this definition of alternative energy will have a definitive impact on how alternative energy will be defined by those individuals and corporate bodies seeking federal recognition (and benefit) by adopting a particular definition of alternative energy. Many state definitions of alternative energy closely follow federal definitions. Case law confirms that federal guidelines supercede state-level guidelines. Federal standards also impact the state and local receipt of alternative energy grants, subsidies, and tax exemptions. It is reasonable, therefore that state and local definitions would be consistent with federal policy. Consistency between federal and state definitions does not mean there are not a few variations. In many ways, variation at the state level illustrates the dynamic and evolving alternative energy paradigm, which is by no means unique to the U.S. policy process. B. Violation – the plan uses either fossil fules or nuclear power C. This is a voting issue – 1. Limits - their interpretation explodes the topic – there are already literally dozens of unpredictable incentive mechanisms which means holding the line on what constitutes “alternative energy” is the only way the negative has a chance. 2. Predictability – our definition is based on U.S. code, it’s how the federal government defines it which is the most predictable on a topic about federal government policy. 3. Potential abuse is a voting issue – it overstretches our research burdens and undermines preparedness for all debates

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ALTERNATIVE ENERGY EXCLUDES FOSSIL FUELS AND NUCLEAR POWER Alternative energy excludes nuclear and fossil fuels – U.S. code U.S. Code, 08 (TITLE 26. INTERNAL REVENUE CODE, 26 USCS § 7701, current as of 4/25/08, lexis0 (D) Alternative energy facility. For purposes of subparagraph (A), the term 'alternative energy facility' means a facility for producing electrical or thermal energy if the primary energy source for the facility is not oil, natural gas, coal, or nuclear power. Alternative energy excludes nuclear and fossil fuels Bertinelli, 87 - Judge (William, Court of Appeal of California, First Appellate District, Division Four, 195 Cal. App. 3d 982; 241 Cal. Rptr. 215; 1987 Cal. App. LEXIS 2255, 10/28, lexis) 17 Public Resources Code section 26003, subdivision (d), defines alternative energy sources as including geothermal sources of energy and any other source of energy, "the efficient use of which will reduce the use of fossil and nuclear fuels." Alternative energy excludes fossil fuels and nuclear power Republic of Korea, 97 (“Act on the Promotion of the Development and Use of Alternative Energy.”, http://faolex.fao.org/docs/texts/kor51024.doc) Article 2 (Definition) The definition of terms used in this Act shall be as follows: 1.The term "alternative energy" means other energy resources than petroleum, coal, atomic energy, or natural gas, which fall under one of the following subparagraphs: (a) Solar energy; (b) Bio energy; (c) Wind force; (d) Small hydraulic power; (e) Fuel cells; (f) Energy from liquefied or gasified coal, and from gasified heavy residual oil; (g) Energy from the ocean; (h) Energy from waste treatment; (i) Geothermal energy; (j) Hydrogenous energy; and (k) Other sources of energy prescribed by the Presidential Decree;

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2NC – THEIR INTERPRETATION UNLIMITS Their interpretation unlimits – deviating from the federal definition of alternative energy means alternative types of oil and natural gas use are also topical Hasan, no date - President of the Altenews Company (Russell, “Introduction to Alternative Energy,” http://www.altenews.com/Alternative%20Energy%20Overview.pdf Aside from renewable energy, there are also alternative energy areas in oil and natural gas, which consists of alternative oil and gas exploration. The traditional reserves of oil and natural gas are becoming depleted, and the global economy’s insatiable demand for energy will make previously untapped reserves of oil and natural gas highly profitable. Alternative oil and gas exploration will find and exploit deposits of oil and gas that will help serve to supply energy to the global demand as resources become scarce. The various forms of alternative oil and gas exploration include oil sand, shale oil, basin centered gas accumulation, tight gas, and coal bed methane, as well as other areas. Two kinds of alternative oil exploration are oil sand, which is also called tar sand, and shale oil. Oil sand is a kind of sand from which oil can be extracted. There are large oil sand reserves in western Canada, centered in the Alberta region, so much so that it makes Canada a major potential source of oil on equal footing with the Middle East, and the exploration of oil sand is a very hot area. A growing oil extraction infrastructure has grown up around the Canadian oil sands, and there are many opportunities in that area. Shale oil is another kind of energy consisting of oil pressed from shale. There are shale oil reserves in Utah and elsewhere, and this is a very interesting field. Companies are competing for the rights to develop shale oil, and as the infrastructure comes on line shale oil could produce a lot of oil. Oil sand and shale oil represent sources of oil that have not been previously tapped, and if the oil can be extracted through cost effective methods then oil sand and shale oil could become highly profitable, as they will produce oil from nontraditional reserves that have not been depleted in a future when most traditional resources will have run out. This area is very exciting for energy companies as the traditional sources of oil dry up, and there are many companies currently working to exploit oil sand and shale oil reserves. Methods of alternative natural gas exploration include basin centered gas accumulation, in which gas in a basin is extracted, tight gas, in which the gas is difficult to get to, coal bed methane, in which natural gas is extracted from coal beds, and gas to liquid technology, in which natural gas from distant locations is converted to a liquid for the purpose of transportation. It should be noted that natural gas is the cleanest of all the fossil fuels in terms of the toxic emissions released when it is burned, and it can be useful for electricity generation and home heating. These technologies should be closely watched as traditional oil and gas reserves become depleted.

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AT: ENERGY POLICY ACT OF 2005 INCLUDES NUCLEAR POWER AS ALTERNATIVE ENERGY 1. This is factually incorrect, their article is from an unqualified staff writer who clearly did no fact checking. If it’s true, then it should be relatively easy for the aff to produce an actual card from the Energy Policy Act that confirms this. 2. The only place the Energy Policy Act uses the phrase “alternative energy” has nothing to do with nuclear power, and it never defines the term Energy Policy Act of 2005 (PUBLIC LAW 109-58, lexis) (b) Energy Programs.--The Commission shall use amounts made available under subsection (d) to carry out energy programs, including-(1) energy generation and development, including-(A) fuel cells, hydroelectric, solar, wind, wave, and tidal energy; and (B) alternative energy sources; (2) the construction of energy transmission, including interties; (3) the replacement and cleanup of fuel tanks; (4) the construction of fuel transportation networks and related facilities; (5) power cost equalization programs; and (6) projects using coal as a fuel, including coal gasification projects.

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ALTERNATIVE ENERGY IS RENEWABLE ENERGY – EXCLUDES SINGLEUSE RESOURCES Alternative energy is renewable energy – excludes uranium because it’s a single use resource ABS Alaskan, 08 (“Alternative Energy Information”, http://www.absak.com/library/alternative-renewable-energy) The term "alternative energy" (also: renewable energy) encompasses a variety of power generation sources. Generally, it refers to electrical power derived from "renewable" resources such as solar or wind energy, as opposed to "single-use" resources such as coal or uranium. The most common forms of alternative energy available for homeowner use today are solar power, wind power and "micro-hydro" power.

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ALTERNATIVE ENERGY IS NON-CONVENTIONAL ENERGY Alternative energy excludes conventional sources of energy – nuclear power is a fully conventional source Welter, 07 - Ph.D. in Nuclear Engineering from Oregon State University and Executive Committee Member, Enviromental Sciences Division, American Nuclear Society (Kent, “Nuclear Power,” 5/9, http://en.allexperts.com/q/Nuclear-Power-2462/Alternative-Energy.htm Question Ok. I'm going to play devil's advocate and say, "There are alternative fuels instead of nuclear power plants that can replace fossil fuels. For instance, hydroleuic power, wind power, solar power, and geothermal power." What can you say about this? Answer Let's start by defining some terms, so that we're on the same page. Fuel is a substance that can be transformed (by burning, nuclear reaction, etc) into useful forms of energy through work (turning of a turbine, cylinders in a car, etc), to produce electricity (in our case). Usually, we speak of alternative fuels when talking about replacements for gas in car engines and alternative energy when speaking about power plants. By the nature of your question, I will assume we are speaking about alternative energy. This is a funny term to me, actually, because it is a catch phrase picked up by the mainstream news to describe everything but coal, gas, and nuclear power plants, which make up about 80% of our electricity generation. My opinion is that we always need a healthy mix of energy solutions at any one time and should strive for increasing our reliance on renewable and more environmentally conscious energy sources. Infrastructure development takes a long time. Power plants are ordered ten years in advance. Even if new technologies become more viable, we still need to wait a while for them to come online. They are very large structures and take a lot of time to build. Anyway, digressing a little again. Nuclear and coal are considered baseload power. They provide the backbone of the US energy grid. As power demands change daily, weekly, seasonally, other plants come online to fill in the gaps. Namely wind, hydro, gas, and solar. One of the reasons is that the energy density of these other power sources is much less than coal or nuclear. Because of its huge environmental impact, hydro dams probably won't be built anymore. I mean, you have to flood an entire valley! But we should rely on the ones we currently have, since they are considered renewable. As for solar, this technology is better suited for distributed power. In other words, better suited for individuals or organizations to power their own buildings, it will never become viable as a large scale energy source because you are limited by physics. There is only a certain amount of energy that gets transported by the sun to earth per square foot of ground. That will never change. Even if solar panels are 100% efficient, you can't change the fact that the sun only shines 50% of the time on the ground and really doesn't transfer a whole lot of energy to the earth at a local scale. In total, yes, but not on a square foot bases. Alternative energy must be nontraditional EPA, 06 (Environmental Protection Agency Terminology Reference System, http://iaspub.epa.gov/trs/trs_proc_qry.navigate_term?p_term_id=688&p_term_cd=TERM) alternative energy Energy derived from nontraditional sources (e.g., compressed natural gas, solar, hydroelectric, wind). Policy: Inventory of U.S. Greenhouse Gas Emissions and Sinks. Annex T: Glossary Term Detail)

(Source: Office of

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ALTERNATIVE ENERGY MEANS GENERATING ENERGY IN WAYS THAT DON’T HURT THE ENVIRONMENT Alternative energy means energy production that doesn’t hurt the environment Compact Oxford English Dictionary, 08 (http://www.askoxford.com/concise_oed/alternativeenergy?view=uk) alternative energy • noun energy fuelled in ways that do not use up natural resources or harm the environment.

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ALTERNATIVE ENERGY IS DISTINCT FROM RENEWABLE ENERGY Alternative energy is distinct from renewable energy Hasan, no date - President of the Altenews Company (Russell, “Introduction to Alternative Energy,” http://www.altenews.com/Alternative%20Energy%20Overview.pdf An overview of the various kinds of alternative energy follows. At the outset we must differentiate between alternative energy, and renewable energy. Alternative energy refers to any form of energy which is an alternative to the traditional fossil fuels of oil, natural gas and coal. Renewable energy are the forms of alternative energy that are renewed by the natural processes of the Earth, such as sunlight from the sun or wind from the air, and so are environmentally friendly. We cover all alternative energies, but we will begin the overview with the renewable energy sources. Alterantive doesn’t have to be renewable Torridge District Council, no date (Glossary, http://www.torridge.gov.uk/onlineplan/written/cpt28.htm) Alternative Energy Energy generated from alternatives to fossil fuel. Need not be renewable.

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ALTERNATIVE ENERGY EXCLUDES FOSSIL FUELS Alternative energy is opposed to fossil fuels Natural Resources Defense Council, no date (Glossary of Environmental Terms, http://www.nrdc.org/reference/glossary/a.asp) alternative energy - energy that is not popularly used and is usually environmentally sound, such as solar or wind energy (as opposed to fossil fuels). Alternative energy is any alternative to conventional fossil fuels Henderson, 06 - University of Baltimore (Lenneal, “Alternative Energy: Public Policy Dynamics,” Delivered at the Conference on Alternative Energy, Auburn University at Montgomery, October 24, 2006, http://www.eng.auburn.edu/altenergy/ppt/Henderson-Public.ppt) •Alternative energy: any alternative to conventional fossil fuel use •Includes fuel source: active, passive, photovoltaic solar; wind; geothermal; biomass; biofuels (switchgrass, biodiesel, ethanol, etc.); nuclear Alterantive energy excludes fossil fuels Encarta World Dictionary, 07 (http://encarta.msn.com/encnet/features/dictionary/DictionaryResults.aspx? refid=1861685359) alternative energy noun Definition: naturally generated energy source: any form of energy obtained from the Sun, wind, waves, or another natural renewable source, in contrast to energy generated from fossil fuels

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ALTERNATIVE ENERGY INCLUDES NUCLEAR POWER Recent legislation defines nuclear power as alternative energy Winter, 07 (Drew, EJ Magazine, “Nuclear Renaissance”, http://www.ejmagazine.com/2007b/pdfs/nuclear.pdf The reason for the sudden interest in nuclear power is due largely to a streamlined licensing process and the Energy Policy Act of 2005. The act, sponsored by Sen. Joseph Lieberman, D-Conn, and Sen. John McCain, R-Ariz., grants numerous subsidies to utilities building nuclear power plants. These plants are listed as an alternative energy source along with wind, solar and other so-called green options. Subsidies include up to $125 million in annual tax credit, an 80 percent loan on construction costs and other benefits for reactors using new technology. Alternative energy includes nuclear power Random House, 06 (http://dictionary.reference.com/search?q=alternative+energy&r=66) alternative energy noun energy, as solar, wind, or nuclear energy, that can replace or supplement traditional fossil-fuel sources, as coal, oil, and natural gas. Nuclear power is alternative energy Hasan, no date - President of the Altenews Company (Russell, “Introduction to Alternative Energy,” http://www.altenews.com/Alternative%20Energy%20Overview.pdf One last kind of alternative energy to discuss is nuclear power. Often classified as a traditional power source, it is possible to think of nuclear as an alternative to fossil fuels. Nuclear power plants do not produce air pollution, so they are clean compared to oil, gas and coal. However, nuclear power produces radioactive waste as a byproduct, and nuclear reactor accidents can have catastrophic effects, so the environmental value of nuclear is debatable. However, it cannot be denied that nuclear power can replace fossil fuels to some extent as they run out, and there are many countries around the world that are currently planning to build new nuclear power plants.

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1NC – INCENTIVES EXCLUDE REGULATIONS A. Incentive are positive inducements – this excludes requirements Turnbull et al, 01 - professor of Special Education and Courtesy Professor of Law, Co-Director of the Beach Center on Families and Disability, University of Kansas (Ann, 30 J.L. & Educ. 445 (2001), “IDEA, Positive Behavioral Supports, and School Safety,” Hein Online) The term "incentive" is different from the term "requirement." An incentive is a positive reason for acting; a requirement is a legal duty to act. The differ-ence in meaning is consistent with our argument above that the PBS provisions do create a presumption in favor of that technology. B. Violation – the plan is a regulatory mandate, not solely a positive inducement C. This is a voting issue – 1. Limits – there are already dozens of positive inducements across dozens of potential types of alternative energy, they make the topic too broad by including an entire new class of plan mechanisms 2. Negative ground – they make the topic bidirectional, including “disincentives” means we need an entire new category of negative arguments because the stick approach is radically distinct from the carrot Harris, 89 – professor of law at the University of Illinois (Fred, 49 La. L. Rev. 1315 (1988-1989) “Automobile Emissions Control Inspection and Maintenance Program: Making It More Palatable to Coerced Participants”, Hein Online) 53. The term "incentives," for purposes of this Article, means those devices that induce one into doing something because of the prospect of reward and, therefore, engender a positive feeling within the actor. An example of incentives in this sense would be tax incentives like credits and/or deductions. But it appears that Congress, some courts and a few commentators have taken a broader view of incentives and have categorized items such as extensions to compliance deadlines and, most notably, sanctions in the Act-denials of federal grants and bans on construction in the event of noncompliance-as incentives to compliance. To be sure, these latter items may induce compliance but surely not because of the extension of a "carrot." Instead, they epitomize the "stick" or "disincentive" approach to behavioral modification. 3. Potential abuse is a voting issue – it overstretches our research burdens and undermines preparedness for all debates

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INCENTIVES ARE POSITIVE Incentives – even broadly defined – must be positive – they exclude negative penalties Knowler, 99 - UN Food and Agricultural Organization (D., “Incentive Systems for Natural Resource Management: The Role of Indirect Incentives”, ftp://ftp.fao.org/docrep/fao/007/x2247e/x2247e00.pdf) 1.8 Incentives may be broadly defined, as in “everything that motivates or stimulates people to act” (Giger 1996). What is important about such a broad definition is that it allows for incentives to be of either a passive or an active nature. In the former case, we can think of incentives as signals in the producer’s environment which influence decision-making about farming practices, whether intended or otherwise. Many macroeconomic policies, being remote from the producer and targeted at objectives other than promoting sustainable farming practices, would fit into this category. In contrast, the notion of ‘active’ refers to a government’s ability to actually design or modify policies with a desire to bring about certain conservation outcomes. McNeely (1988), for example, refers to this concept of incentive when he defines incentives as “any inducement which is specifically intended to incite or motivate governments, local people, and international organizations” (p.38-39). We draw this distinction because of the need to consider both active and passive aspects when assessing the importance of incentives for NRM. While governments may be most concerned with the design of good policies aimed at improving NRM, they need to be cognizant of the sometimes counterproductive influence exerted by a poor incentive structure, in the passive sense. 1.9 McNeely (1988) also makes the useful distinction between incentives, disincentives and perverse incentives. In contrast to incentives, which we have described above, disincentives are purposely designed to discourage particular behaviours and can include taxes, fines and various other penalties or moral suasion. For purposes of this study, we will not consider disincentives as distinct from incentives per se, but it is useful to be aware of the distinction. In contrast, perverse incentives incite resource users to damage or deplete the resources in question in a socially inefficient manner and are closely related to the concept of policy failure, which is discussed in Chapter 2. Incentives are an offer of value meant to alter a course of action Grant, 02 - professor of political science at Duke University (Ruth, “THE ETHICS OF INCENTIVES: HISTORICAL ORIGINS AND CONTEMPORARY UNDERSTANDINGS,” Economics and Philosophy, 18 (2002) 111, proquest) Increasingly in the modern world, incentives are becoming the tool we reach for when we wish to bring about change. In government, in education, in health care, between and within institutions of all sorts, incentives are offered to steer people's choices in certain directions. But despite the increasing interest in ethics and economics, the ethics of the use of incentives has raised very little concern. From a certain point of view, this is not surprising. When incentives are viewed from the perspective of market economics, they appear to be entirely unproble-matic. An incentive is an offer of something of value, sometimes with a cash equivalent and sometimes not, meant to influence the payoff structure of a utility calculation so as to alter a person's course of action. In other words, the person offering the incentive means to make one choice more attractive to the person responding to the incentive than any other alternative. Both parties stand to gain from the resulting choice. In effect, it is a form of trade, and as such, it meets certain ethical requirements by definition. A trade involves voluntary action by all parties concerned to bring about a result that is beneficial to all parties concerned. If these conditions were not met, the trade would simply not occur. And as inducements in a voluntary transaction, incentives certainly have the moral high ground over coercion as an alternative. Incentives are subsidies and financial assistance Energy Information Administration, 01 (US Department of Energy, “Renewable Energy 2000: Issues and Trends”, February, http://tonto.eia.doe.gov/ftproot/renewables/06282000.pdf) The term “incentive” is used instead of “subsidy.” Incentives include subsidies in addition to other Government actions where the Government’s financial assistance is indirect. A subsidy is, generally, financial assistance granted by the Government to firms and individuals.

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INCENTIVES ARE DISTINCT FROM TAX CREDITS Incentives are distinct from tax credits – they require linking behavior to future action, not credit for actions already taken Bingel, 04 - senior manager of state and local taxes with Smart and Associates LLP(Gary, “Getting to the STATE'S CAPITAL: Negotiating Business Incentives”, Pennsylvania CPA Journal. Summer, proquest) When considering financial assistance from governmental authorities, it is important to keep in mind the definitions of "incentive" and "credit." "Incentive" is something that stimulates one to take action,1 and "credit" is to give deserved commendation for; to commend one for.2 These concepts are at the root of why governments give assistance to businesses in the form of incentives and tax credits. Incentive programs are usually offered to stimulate businesses to take some form of action, and are considered forward-looking. Tax credits are often offered to reward businesses that took some form of desired action, and are a reaction to steps already taken. There are some programs, however, that combine these concepts, such as negotiated tax credits and those that require preapproval, that are used to promote some future action. There are also incentives programs that, while negotiated and subject to preapproval, are only rewarded once a specified action, or promise, has been fulfilled. The following discussion will focus on true incentives programs, those that require preapproval and negotiation, as opposed to pure tax credits, which merely reward past behavior and that do not require any form of preapproval or negotiation.

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INCENTIVES ARE DISTINCT FROM BANS Regulatory incentives are distinct from bans – they require some discretion Uri, 03 – Senior Industry Economist in the Pricing Policy Division, Wireline Competition Bureau, Federal Communications Commission (Noel, “The change in technical and allocative efficiency of local exchange carriers in the United States” Info : the Journal of Policy, Regulation and Strategy for Telecommunications, Information and Media. Bradford: 2003. Vol. 5, Iss. 3; pg. 53, 12 pgs, proquest) Incentive regulation is typically defined as the implementation of rules that encourage a regulated firm to achieve desired goals by granting some, but not complete, discretion to the firm. Three aspects of this definition of incentive regulation are important. First, regulatory goals must be clearly specified before incentive regulation is designed. The properties of the best incentive regulation plan will vary according to the goals the plan is designed to achieve. Second, the regulated firm is granted some discretion under incentive regulation. For example, while the firm may be rewarded for reducing its operating costs, it is not told precisely how to reduce these costs. Third, the regulator imposes some restrictions on relevant activities or outcomes under incentive regulation (Baron, 1991; Bernstein and Sappington, 1999). One popular incentive regulation plan is the price cap plan. The central idea behind price cap regulation is to control the prices charged by the regulated firm, rather than its earnings. Essentially, price cap regulation plans require the regulated firm's average real prices to fall annually by a specified percentage (Mitchell and Vogelsang, 1991). This percentage is nominally referred to as the "X-factor" or the productivity offset[1].

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INCENTIVES MUST HAVE MATERIAL EFFECT Incentives are limited to cash or in-kind transfers to speed up adoption Cooley, 07 - CRANFIELD UNIVERSITY, Thesis submitted for a degree in Masters of Science (Suzannah, “GROWTH OF THE UK LOW CARBON DIOXIDE AND ALTERNATIVE TECHNOLOGY VEHICLE MARKET: INVESTIGATING INFLUENTIAL FACTORS IN THE ADOPTION OF LOW CARBON VEHICLES,” September, https://dspace.lib.cranfield.ac.uk/bitstream/1826/2401/1/Sue%20Cooley%20Thesis%20final%20v2.pdf) Incentives can be used to introduce or increase actual or perceived relative advantages. Rogers (2003) defines incentives as a direct or indirect payment of cash or in kind that is given to an individual or system in order to encourage behaviour change and speed up adoption. Incentives can take many forms for example, taxes, grants, penalties, finder’s fees, bonuses. Oltra & Saint-Jean (2006) suggest that government grants to support alternative fuel infrastructure, tax exemptions for inconvenience and negative taxation for ICEV could secure the switch from ICEVs to LCVs. Akerman & Hojer (2006) observes in the 1980’s tax incentives on unleaded petrol and lower emitting vehicles successfully promoted three-waycatalytic-converters. For high mileage users, Vries & Rouwendal (1999) and Wissen & Golob (1992) also found financial incentives encouraged LCV adoption. Moreover, Lane & Potter (2007) emphasises that the benefit of incentives in combating the barriers of high purchase price, serving costs and long payback periods associated with many LCVs, concluding that the UK company car tax is a crucial factor in determining employee’s car choice and the UK Government’s Powershift grant to be an important factor encouraging the purchase of the Toyota Prius hybrid.

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1NC - INCENTIVES MUST BE LINKED TO A PARTICULAR OUTCOME A. Incentives are negotiated offers linked to a particular outcome – they are distinct from policies that motivate behavioral change Grant, 02 - professor of political science at Duke University (Ruth, “THE ETHICS OF INCENTIVES: HISTORICAL ORIGINS AND CONTEMPORARY UNDERSTANDINGS,” Economics and Philosophy, 18 (2002) 111, proquest) We are now in a position to identify a core understanding or a distinctive meaning of the concept of incentives; what we might call incentives `strictly speaking'. Incentives are employed in a particular form of negotiation. An offer is made which is an extrinsic benefit or a bonus, neither the natural or automatic consequence of an action nor a deserved reward or compensation. The offer is usually made in the context of an authority relationship - for example, adult/child, employer/employee, government/citizen or government/organization. The offer is a discrete prompt expected to elicit a particular response. Finally and most importantly, the offer is intentionally designed to alter the status quo by motivating a person to choose differently than he or she would in its absence. If the desired action would result naturally or automatically, no incentive would be necessary. An incentive is the added element without which the desired action would not occur. For this reason, it makes sense to speak of `institutional incentives' when referring to arrangements designed to encourage certain sorts of responses. `Perverse incentives' is also an expression that implies that incentives are meant to direct people's behavior in particular ways. Central to the core meaning of incentives is that they are an instrument of government in the most general sense. The emergence of the term historically within discourses of social control is illustrative of this point.

B. Violation – The plan is not a negotiated offer tied to alternative energy – instead it takes an action that might effect alternative energy, but it is not directly linked to it. The vacuum test proves – if alternative energy didn’t actually exist, the plan would still make perfect sense. C. This is a voting issue – 1. Limits – if they don’t have to tie the plan directly to alternative energy, it explodes the topic to include anything in the world that effects energy consumption 2. Negative ground – their interpretation justifies cases that allow them to avoid alternative energy debates entirely – for example, tradeable permits or a carbon tax alone could spur energy efficiency, carbon sequestration or emissions capture technology, or greater reliance on nuclear power or natural gas, which is less polluting. Only tying incentives directly to alternative energy guarantees a reasonable expectation of preparedness. 3. Potential abuse is a voting issue – it overstretches our research burdens and undermines preparedness for all debates

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2NC – INCENTIVES MUST BE LINKED TO A SPECIFIC POLICY ADJUSTMENT Incentives must be linked to a specific policy adjustment Dorussen, 01 – Department of Political Science at the Norwegian University of Science and Technology (Han, Journal of Peace Research, March, “Mixing Carrots with Sticks: Evaluating the Effectiveness of Positive Incentives,” JSTOR) The studies generally identify incentives by enumerating appropriate policies. Examples are the granting of Most Favored Nation status, the transfer of nuclear technology, development aid, IMF assistance, etc. As a result, some ambiguity tends to remain, because the same policy instrument can occasionally be viewed as either an incentive or a sanction. Further, there is some variation in what is considered the most interesting aspect of incentives.

'[a]n incentive is defined as the granting of a political or economic benefit in exchange for a specific policy adjustment by the recipient nations' (my italics). Drezner (pp. 50-51) and Bernauer & Ruloff restrict themselves to economic incentives. Long In Cortright (p. 6),

studies the longterm, thus less specific, effects of trade incentives and technology transfers. Bernauer & Ruloff (p. 2), moreover, reserve the term incentives for 'additional measures tailored to the specific needs of one or more actors'. In this essay, I emphasize the common denominator in which economic incentives, mainly financial assistance and preferential trade arrangements, are exchanged for political concessions. I However, as I argue below, the additional analytical distinctions made by Long and Bernauer & Ruloff are valuable.

Incentives must be linked to a particular behavioral change Hicks and Adams, 03 (Vern and Orvill, “Pay and Non-pay Incentives, Performance and Motivation‡,” Studies in Health Services Organisation & Policy, http://www.itg.be/itg/GeneralSite/InfServices/Downloads/shsop21.pdf) The World Health Report 2000, Health Systems: Improving Performance, defines incentives as “all the rewards and punishments that providers face as a consequence of the organisations in which they work, the institutions under which they operate and the specific interventions they provide” This definition suggests that the organisation, the work that is done and the setting in which work takes place will determine the incentive used and its resulting impact. Buchan et al add another dimension by defining an incentive in terms of its objective: “An incentive refers to one particular form of payment that is intended to achieve some specific change in behaviour” (2). Incentives are 5 mechanisms that must have the explicit objective of inducing a certain behavior Dedeurwaerdere, no date - Centre for Philosophy of Law, Université Catholique de Louvain (Tom, “Bioprospection: From the Economics of Contracts to Reflexive Governance,” http://www.bioecon.ucl.ac.uk/4th_paper/Dedeurwaerdere.doc) Here I employ the broad definition of incentives used in the OECD handbook on incentive measures, covering both direct and indirect incentives: “The incentive measures presented can be roughly categorised in the following eight groups: fees, charges and environmental taxes; market creation and assignment of well-defined property rights; reform or removal of adverse subsidies; regulations and access restrictions; environmental funds and public financing; information provision and capacity building; economic valuation of environmental benefits and costs; and stakeholder involvement and institution building. Only the first five groups actually comprise “incentive measures” as traditionally understood, i.e. the implementation or abolition of an administrative act by an authority, usually the central government, with a legal grounding and the explicit objective to induce a certain behaviour” (OECD, 1999, p. 73). In this discussion, I have included information provision, stakeholder involvement, economic valuation, and capacity and institution building under the evolutionary approaches to incentive politics, while other approaches might have chosen to group them under framework building (OECD, 1999, p. 97) or reflexive implementation processes (Ibid, p. 14; p. 73).

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2NC – INCENTIVES MUST BE LINKED TO A SPECIFIC POLICY ADJUSTMENT Incentives are linked to deliberate policy outcomes – it’s more than just inciting to action Sweeney, 04 (Mark, Spectrum: The Journal of State Government, 1/1, “The Challenge of Business Incentives for State Policymakers,” http://www.mccallumsweeney.com/uploads/ARTICLE-23-10%20-%20Challenge%20of%20Business%20Incentives%20for%20State%20Policymakers %20-%20Spectrum%20-%2001-04.pdf)

Funk and Wagnalls defines incentives as "that which incites to action; a motivating force; a stimulus." (1) For economic development policymakers, the term "incentives" is not so simple. In some uses, incentives are broadly defined and include any location advantage that a community may have, such as position on a river, or mild four-season climate. Incentives are best understood as distinct from location advantages. Economic development incentives might be defined as a deliberate policy or set of policies designed to make a location more attractive to particular investment decision makers. This definition distinguishes incentives as policy actions as opposed to inherent geographic advantages of a location. It also distinguishes between general public investment and actions to attract specific industries or companies (Table 1). While all of the above characteristics are important and should be communicated as "selling" points for a community, only the deliberate policy actions will be recognized as incentives by the investment decision maker. These policy actions can span a wide range of activities and still be understood as incentives. Most incentives can be classified into three broad categories: infrastructure, tax policy and community development. Table 2 is a broad list of some of the incentives that would fit in these categories.

Incentives are tools linked to an overall goal Sweeney, 04 (Mark, Spectrum: The Journal of State Government, 1/1, “The Challenge of Business Incentives for State Policymakers,” http://www.mccallumsweeney.com/uploads/ARTICLE-23-10%20-%20Challenge%20of%20Business%20Incentives%20for%20State%20Policymakers %20-%20Spectrum%20-%2001-04.pdf)

Incentives should be approached as part of a state or commu-nity’s overall economic development strategy. Economic devel-opment strategy and objectives should drive incentive policy, not the other way around. Incentives are not a policy objective, per se; rather, they are a policy tool. Even in the case of project-driven incentives, the community is best prepared to offer them when it has a sound understanding of its strategic goals and objectives.

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2NC - INCENTIVES REQUIRE THE “BUT FOR” TEST Incentives must use the ‘but for’ test – it must have a direct cause and effect relationship on alternative energy LeRoy, 08 - directs Good Jobs First, a nonprofit, nonpartisan resource center promoting corporate and government accountability in economic development (Greg, “TIF, Greenfields, and Sprawl: How an Incentive Created to Alleviate Slums Has Come to Subsidize Upscale Malls and New Urbanist Developments” Planning & Environmental Law. Chicago: Feb 2008. Vol. 60, Iss. 2; pg. 3, 9 pgs, Proquest) WHAT IS TAX INCREMENT FINANCING (TIF)? TIF is an economic development incentive enabled under state law and in turn awarded by local governments. As regulated by state statute, a locality designates an area as a "TIF district" for redevelopment (or in the case of a greenfield site, for new development). When new construction occurs within that district, property values and tax assessments go up and therefore property taxes also rise. When that happens, the tax revenue is split into two streams. The first stream, derived from the "base value" or pre-TIF assessment, continues to go to local taxing bodies as it did before (i.e., to schools, city, county, etc.). The second streammade up of all the increase or "tax increment"-gets diverted to benefit only the new development activity in the TIF district. This diversion can last as many as 15, 23, even 40 years, depending on each state's rules (durations that can strain the idea that a TIF district is "priming the pump" to restore private-sector confidence). The diverted increment can support the issuance of debt (TIF bonds) or it can be used on a "pay-as-you-go" basis. The funds are typically restricted to paying for infrastructure or other public improvements; they are also commonly allowed for brownfield clean-up, land parceling, demolition or other site preparation. However, in some states TIF revenues may even be directly paid to developers to reimburse private construction costs, effectively increasing their rates of profit. In addition to property tax diversions, some states also allow incremental increases in the local share of sales taxes to be "TIFed," but not the state share, which is usually largest. However, as detailed below, New Mexico in 2006 began to allow all three increments of its Gross Receipts Tax to be captured for TIF-diverting large sums of revenue from the state as well as from cities and counties. As originally enacted, TIF in many states required that developers certify that "but for" the TIF subsidy, the project would not occur. This was intended as a safeguard to ensure that the TIF truly met the definition of "incentive"; that is, that it caused something to occur that would not otherwise have happened-to "leverage" private investment. However, the "but for" test has in most states become at best a pro forma gesture, and at worst a fig leaf enabling public officials to avoid the charge of "giveaway" and claim credit even for projects that would have occurred anyway.

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AT: COUNTERINTERPRETATION – INCENTIVES MOTIVATE ACTION / INCENTIVES REFLECT MARKET RESPONSES Defining incentives broadly creates conceptual confusion and makes ANY ACTION an incentive Grant, 02 - professor of political science at Duke University (Ruth, “THE ETHICS OF INCENTIVES: HISTORICAL ORIGINS AND CONTEMPORARY UNDERSTANDINGS,” Economics and Philosophy, 18 (2002) 111, proquest) This history also allows us to define more clearly what `incentives' means. Currently, the term is used so broadly that it is often almost synonymous with motivation altogether. But, despite its current quite general usage, a distinctive specific meaning of the term remains, one that is easier to identify after taking this historical journey. The specific meaning can be illustrated by identifying those situations where only the word `incentive' will do. Very often, the term is now used where another would do equally well. For example, `incentive' is

sometimes used as if it were a synonym for `reward', but they do not mean exactly the same thing. A reward or punishment, unlike an incentive or disincentive, is understood to be merited or deserved. Offering a reward may serve as a motivator or incentive to action, but the two are quite distinct in principle. People can win awards, for example, without even knowing in advance that they were eligible. They deserve the reward, and there is no element of motivation involved at all. Similarly, `incentive' is sometimes used as if it were synonymous with `motivation' generally speaking. But there are several important sorts of motivation that are not suggested by the term. When we speak in this way, we implicitly deny the phenomena of habitual behavior, or action motivated by a sense of responsibility or of the reasonableness of a course of action (with reasonableness here understood as something other than individual utility maximization), or the way in which a role model or ideal can serve as motivator. Action which is initiated by the individual or understood as internally motivated is not really compre-hended in the concept of motivation as incentive. Incentives are external prompts to which the individual responds. The use of `incentives' to speak of market forces is also problematic, though it is easy to see the logic of this development within the language of economics. If one company lowers the price of its product, we might readily say that other companies now have an incentive to lower theirs. But we would not say that the first company offered all other companies an incentive to lower their prices.55 Market forces are not conscious

and intentional, and their rationale is intrinsic to the economic process itself. We might just as well say in this situation that the first company's lower price is a good reason for other companies to lower theirs given that they need to remain competitive. The term `incentive' says nothing that `reason' cannot say as well in this case. A similar logic applies to speaking of loan conditions as incentives. The International Monetary Fund may make a loan to a nation only on condition that it alter its inflationary policies. If the reason for the condition is intrinsic to the IMF's own financial aims, `incentive' may be a misnomer. The situation is like that of requiring a certain training as a condition for the practice of medicine; we would be unlikely to refer to this as an `incentive' to go to medical school for people who wish to become doctors.56 When the IMF is criticized for using financial incentives unethically to control the internal policies of borrowing nations, it is because the critics suspect that its real purposes are political rather than strictly limited to the legitimate concern to secure the financial health of the Fund. The distinction between market forces and incentives can be illustrated further by considering the difference between wages as compensation and incentives as bonuses in employment. Compensation means `rendering equal', a `recompense or equivalent', `payment for value received or service rendered', or something which `makes up for a loss' ± as in the term `unemployment compensation'. Compensation equalizes or redresses a balance, and so, to speak of `fair compensation' is entirely sensible. But to speak of a `fair incentive' is not. An incentive is a bonus, which is defined as something more than usually expected, that is, something that exceeds normal compensation. It is an amount intentionally added to the amount that would be set by the automatic and unintentional forces of the market. An incentive is also a motive or incitement to action, and so an economic incentive offered to an employee is a bonus designed to motivate the employee to produce beyond the usual expectation. It should be obvious then, that compensa- tion and incentives are by no means identical. The per diem received for jury service, for example, is a clear case of compensation which is not an incentive in any sense. It is not difficult to see how it might have happened that the boundaries were blurred between the specific conception of incentives and conceptions of the automatic price and wage-setting forces of the market. Both can be subsumed under very general notions of the factors that influence our choices or motivate action, and `incentives' carries this general meaning as well. Nonetheless, the blurring of that boundary creates a great deal of confusion. Incentives, in fact, are understood better in contradistinction to market forces than as identical to them. It is only by maintaining a clear view of their distinctive character that the ethical and political dimensions of their use are brought to light. Moreover, conceptual clarity and historical understanding go hand in hand in this case. It should no longer be surprising to find that the term `incentives' is not used by Adam Smith in first describing the operation of the market, but appears instead at a time when the market seemed inadequate in certain respects to the demands presented by changing economic circumstances. Other eighteenth and nineteenth- century ideas, often taken as simple precursors of contemporary analyses of incentives, can now be seen in their distinctive character as well. For example, Hume and Madison offer an analysis of institutional design which differs significantly from `institutional incentives', though the two are often confused. These thinkers were concerned with preventing abuses of power. They sought to tie interest to duty through institutional mechanisms to thwart destructive, self-serving passions and to secure the public good. Contemporary institutional analyses, by contrast, proceed without the vocabulary of duty or public good and without the exclusively preventive aim. Institutional incentives are viewed as a means of harnessing individual interests in pursuit of positive goals.57 Similarly, early utilitarian discussions, Bentham's in particular, differ markedly from twentieth century discussions of incentives despite what might appear to be a shared interest in problems of social control. Again, Bentham is interested entirely in prevention of abuses or infractions of the rules. The rationale for his panopticon is based on the observation that prevention of infractions depends upon a combination of the severity of punishment and the likelihood of detection.58 If the latter could be increased to one hundred per cent, through constant super- vision and inspection, punishment would become virtually unnecessary. This is a logic that has nothing whatever to do with the logic of incentives as a means of motivating positive choices or of encouraging adaptive behavior.

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AT: COUNTERINTERPRETATION – INCENTIVES MOTIVATE ACTION Even if that’s true – there’s an important distinction between direct and indirect incentives – the resolution’s SPECIFICATON of “alternative energy incentives” implies they must be directly for alternative energy This interpretation is vital to limits - direct incentives are specific inducements targeted to particular groups in exchange for particular actions – indirect incentives are mechanisms designed to manipulate behavior and are limitless Dyson et al, 03 - International Union for Conservation of Nature and Natural Resources (Megan, Flow: The Essentials of Environmental Flows, p. 67-68) Understanding of the term ‘incentives’ varies and economists have produced numerous typologies. A brief characterization of incentives is therefore warranted. First, the term is understood by economists as incorporating both positive and negative aspects, for example a tax that leads a consumer to give up an activity that is an incentive, not a disincentive or negative incentive. Second, although incentives are also construed purely in economic terms, incentives refer to more than just financial rewards and penalties. They are the “positive and negative changes in outcomes that individuals perceive as likely to result from particular actions taken within a set of rules in a particular physical and social context.”80 Third, it is possible to distinguish between direct and indirect incentives, with direct incentives referring to financial or other inducements and indirect incentives referring to both variable and enabling incentives.81 Finally, incentives of any kind may be called ‘perverse’ where they work against their purported aims or have significant adverse side effects. Direct incentives lead people, groups and organisations to take particular action or inaction. In the case of environmental flows these are the same as the net gains and losses that different stakeholders experience. The key challenge is to ensure that the incentives are consistent with the achievement of environmental flows. This implies the need to compensate those that incur additional costs by providing them with the appropriate payment or other compensation. Thus, farmers asked to give up irrigation water to which they have an established property or use right are likely to require a payment for ceding this right. The question, of course, is how to obtain the financing necessary to cover the costs of developing such transactions and the transaction itself. Variable incentives are policy instruments that affect the relative costs and benefits of different economic activities. As such, they can be manipulated to affect the behaviour of the producer or consumer. For example, a government subsidy on farm inputs will increase the relative profitability of agricultural products, hence probably increasing the demand for irrigation water. Variable incentives therefore have the ability to greatly increase or reduce the demand for out-of-stream, as well as in-stream, uses of water. The number of these incentives within the realm of economic and fiscal policy is practically limitless.

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INCENTIVES REQUIRE NEGOTIATIONS EXTERNAL TO THE FEDERAL GOVERNMENT Incentives are a negotiated offer external to the agent offering it – this means the federal government can’t offer incentives to itself Grant, 02 - professor of political science at Duke University (Ruth, “THE ETHICS OF INCENTIVES: HISTORICAL ORIGINS AND CONTEMPORARY UNDERSTANDINGS,” Economics and Philosophy, 18 (2002) 111, proquest) Similarly, `incentive'

is sometimes used as if it were synonymous with `motivation' generally speaking. But there are several important sorts of motivation that are not suggested by the term. When we speak in this way, we implicitly deny the phenomena of habitual behavior, or action motivated by a sense of responsibility or of the reasonableness of a course of action (with reasonableness here understood as something other than individual utility maximization), or the way in which a role model or ideal can serve as motivator. Action which is initiated by the individual or understood as internally motivated is not really compre-hended in the concept of motivation as incentive. Incentives are external prompts to which the individual responds. The use of `incentives' to speak of market forces is also problematic, though it is easy to see the logic of this development within the language of economics. If one company lowers the price of its product, we might readily say that other companies now have an incentive to lower theirs. But we would not say that the first company offered all other companies an incentive to lower their prices.55 Market forces are not conscious and intentional, and their rationale is intrinsic to the economic process itself. We might just as well say in this situation that the first company's lower price is a good reason for other companies to lower theirs given that they need to remain competitive. The term `incentive' says nothing that `reason' cannot say as well in this case. A similar logic applies to speaking of loan conditions as incentives. The International Monetary Fund may make a loan to a nation only on condition that it alter its inflationary policies. If the reason for the condition is intrinsic to the IMF's own financial aims, `incentive' may be a misnomer. The situation is like that of requiring a certain training as a condition for the practice of medicine; we would be unlikely to refer to this as an `incentive' to go to medical school for people who wish to become doctors.56 When the IMF is criticized for using financial incentives unethically to control the internal policies of borrowing nations, it is because the critics suspect that its real purposes are political rather than strictly limited to the legitimate concern to secure the financial health of the Fund. The distinction between market forces and incentives can be illustrated further by considering the difference between wages as compensation and incentives as bonuses in employment. Compensation means `rendering equal', a `recompense or equivalent', `payment for value received or service rendered', or something which `makes up for a loss' ± as in the term `unemployment compensation'. Compensation equalizes or redresses a balance, and so, to speak of `fair compensation' is entirely sensible. But to speak of a `fair incentive' is not. An incentive is a bonus, which is defined as something more than usually expected, that is, something that exceeds normal compensation. It is an amount intentionally added to the amount that would be set by the automatic and unintentional forces of the market. An incentive is also a motive or incitement to action, and so an economic incentive offered to an employee is a bonus designed to motivate the employee to produce beyond the usual expectation. It should be obvious then, that compensa- tion and incentives are by no means identical. The per diem received for jury service, for example, is a clear case of compensation which is not an incentive in any sense. It is not difficult to see how it might have happened that the boundaries were blurred between the specific conception of incentives and conceptions of the automatic price and wage-setting forces of the market. Both can be subsumed under very general notions of the factors that influence our choices or motivate action, and `incentives' carries this general meaning as well. Nonetheless, the blurring of that boundary creates a great deal of confusion. Incentives, in fact, are understood better in contradistinction to market forces than as identical to them. It is only by maintaining a clear view of their distinctive character that the ethical and political dimensions of their use are brought to light. Moreover, conceptual clarity and historical understanding go hand in hand in this case. It should no longer be surprising to find that the term `incentives' is not used by Adam Smith in first describing the operation of the market, but appears instead at a time when the market seemed inadequate in certain respects to the demands presented by changing economic circumstances. Other eighteenth and nineteenth- century ideas, often taken as simple precursors of contemporary analyses of incentives, can now be seen in their distinctive character as well. For example, Hume and Madison offer an analysis of institutional design which differs significantly from `institutional incentives', though the two are often confused. These thinkers were concerned with preventing abuses of power. They sought to tie interest to duty through institutional mechanisms to thwart destructive, self-serving passions and to secure the public good. Contemporary institutional analyses, by contrast, proceed without the vocabulary of duty or public good and without the exclusively preventive aim. Institutional incentives are viewed as a means of harnessing individual interests in pursuit of positive goals.57 Similarly, early utilitarian discussions, Bentham's in particular, differ markedly from twentieth century discussions of incentives despite what might appear to be a shared interest in problems of social control. Again, Bentham is interested entirely in prevention of abuses or infractions of the rules. The rationale for his panopticon is based on the observation that prevention of infractions depends upon a combination of the severity of punishment and the likelihood of detection.58 If the latter could be increased to one hundred per cent, through constant super- vision and inspection, punishment would become virtually unnecessary. This is a logic that has nothing whatever to do with the logic of incentives as a means of motivating positive choices or of encouraging adaptive behavior.

We are now in a position to identify a core understanding or a distinctive meaning of the concept of incentives; what we might call incentives `strictly speaking'. Incentives are employed in a particular form of negotiation. An offer is made which is an extrinsic benefit or a bonus, neither the natural or automatic consequence of an action nor a deserved reward or compensation. The offer is usually made in the context of an authority relationship - for example, adult/child, employer/employee, government/citizen or government/organization. The offer is a discrete prompt expected to elicit a particular response. Finally and most importantly, the offer is intentionally designed to alter the status quo by motivating a person to choose differently than he or she would in its absence. If the desired action would result naturally or automatically, no incentive would be necessary. An incentive is the added element without which the desired action would not occur. For this reason, it makes sense to speak of `institutional incentives' when referring to arrangements designed to encourage certain sorts of responses. `Perverse incentives' is also an expression that implies that incentives are meant to direct people's behavior in particular ways. Central to the core meaning of incentives is that they are an instrument of government in the most general sense. The emergence of the term historically within discourses of social control is illustrative of this point.

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INCENTIVES ARE POLICIES THAT INCITE ACTION Incentives are any policy that incites someone to action Menezes, 90 – JD at Thomas Cooley Law School (Marco, 7 Cooley L. Rev. 139 (1990) “P.A. 198: Michigan's Industrial Property Tax Abatement Law: Fortuity or Futility”, Hein Online) Any analysis of the public policies underlying PA 198 must focus on the Act's intended function as an incentive to economic development. The term "incentive" is generally defined as "some-thing that incites or has a tendency to incite to determination or action."200 Since tax abatement. policies reduce business costs, they can be broadly defined as "incentives.'"201 Lower costs are "good for business" and generally tend to incite, or actually do incite, in-dustrial development.202 Obviously, what may be an incentive to one industry may not be an incentive to another.203 Thus, incentives generally tending to incite action are distinguishable from in- centives actually inciting action in a specific case.204

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INCENTIVE ALLOWS GOALS IN ADDITION TO ALTERNATIVE ENERGY Incentives allow additional policy goals other than just alternative energy Williams, 07 - Nova Scotia Cooperative Council (Bob, Submission in Response to Consultation Paper: Renewed Energy Strategy 2007, http://www.gov.ns.ca/energy/Download.aspx?serverfn=./files/drm/f0c518e8-c38f-4d7f-9bcae17ccc2b0b8b.pdf&downloadfn=submission%20-%2007%20-%20Bob%20Williams%20%2020071212.pdf&contenttype=) Anyone who has a reasonable amount of experience or knowledge of renewable energy development knows that there are two general approaches. One being the RPS and tendering model and the other is one of fixed price incentives, commonly known as feed in tariffs (FIT). It is also well recognized that if one is serious about local economic benefits being derived from renewable energy, indeed facilitating or stimulating ‘sustainable prosperity’, then the model known as ‘Community Power’ or CBED, Community Based Energy Development, is one that must be considered. It is not co-incidental that FIT as an incentive based policy go hand-in-hand with CBED. The word incentive is paramount here because it makes clear the fact that the primary objective of these mechanisms is not simply least direct cost, but is to achieve specific policy goals that are in addition to and complimentary to the generation of clean energy. Such goals commonly include promotion of technologies, siting of renewable energy projects and encouragement of new ownership models. In fact FITs were first designed and adopted in Europe to promote a specific ownership model, that of community ownership through co-operatives.

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INCENTIVES ARE POSITIVE OR NEGATIVE Energy incentives can be positive or negative Economic Commission for Europe, 06 (“DRAFT 2006 REVIEW OF STRATEGIES AND POLICIES FOR AIR POLLUTION ABATEMENT,” 11/14, http://www.unece.org/env/documents/2006/eb/EB/ece.eb.air.2006.4.add.2.e.pdf) 1. Positive incentives 53. Positive incentives include: grants, subsidies, tax rebates, tax incentives, credit guarantees, soft loans and tradable permits. All of these aim to have an impact on individual patterns of consumption and to minimize air pollution and its effects. In Canada, under the Wind Power Production Incentive, companies opting for wind generators were eligible for payments of up to 1.2 cents/kilowatt-hour produced. In Cyprus, since 2004, the owners of vehicles equipped with catalytic converters paid less tax than owners of non-catalytic vehicles. Additionally, the following tax incentives were introduced in November 2003: a 15% discount on the excise duty for cars with CO2 emissions of 150g/km or less and a 10% penalty on cars with CO2 emissions of 275g/km or more. From January 2006 the purchase of a hybrid car was subsidised by the Government by an amount of £800 CYP (about Euro 1,350) and incentives were offered for scrappage of vehicles over 15 years old. In Lithuania the Environmental Protection Investment Fund provided subsidies for environmental protection projects of up to 350,000 litas (approximately 101,000 euros) over a three-year period. The Fund financed 26 environmental protection projects, 18 of which (70%) were related to pollution reduction, conversion to cleaner fuels, renovation of home boilers, installation of air-treatment filters or other energy-saving measures.

54. Many Parties used subsidies and other financial incentives to promote the use of renewable energy such as solar power or wind turbines, including in Austria, Canada, the Czech Republic, Germany, Italy and the Netherlands. The Czech Republic reported that it offered financial support for pilot projects for the supply of alternative energy, especially thermal energy. Subsidies could be obtained for the preparation of project documents and for the implementation of projects with a maximum of 100,000 euros over three years. Since July 2005, the Netherlands has stimulated the use of sulphur-free diesel by reducing the tax charged; since June 2005, the purchase of new diesel-powered cars equipped with soot filters was encouraged through a 600-euro discount on the tax for personal motor vehicles. Starting in mid-2006, a subsidy for retrofitting a soot filter into existing, trucks, vans, buses, personal cars, diesel powered locomotives and inland ships would come into force. A subsidy scheme was also in force since 2006 for catalytic converters for inland shipping. More than 100 techniques for the reduction of air pollution (e.g. wet scrubbers, desulphurisation processes, low NOx burners, catalytic reduction system, low emission animal housing systems, etc.) were eligible for fiscal benefits intended to stimulate environmentally friendly technologies. 55. In Slovenia, subsidies and soft loans were available for energy efficiency measures and for the use of renewable energy sources for households (e.g. solar heating technologies, energy efficient windows, biomass heating, heat pumps) and for companies (e.g. biomass technologies). The United Kingdom has allocated over £500 million (approximately 740 million euros) between 2002 and 2008 to support the development of renewable and low-carbon technologies. 56. Austria noted it offered subsidies for the rehabilitation of old residential buildings in order to reduce their impact on air pollution. Positive incentives in Germany included tax incentives for the use of low sulphur fuels and for renewable energies and federal grants to promote public transport in municipalities. 57. Tradable permits were also being increasingly utilized to minimise emissions. Canada reported it had implemented tradable unit systems to reduce two toxic substances, tetrachloroethylene and trichloroethylene. At the provincial level, Ontario’s cap and trade system for NO and SO2 emissions from power plants and British Columbia’s differentiated fees for industrial polluters were noteworthy. At the federal level, a cap and trade system to phase out methyl bromide and HCFCs had been introduced. In the Netherlands, a NOx emission trading system, started in July 2005, was based on performance standard rates. It focused on extra overall reductions in addition to those resulting from the ELVs set forth in national legislation. Slovakia also had an emissions trading act for SO2 and CO2.

2. Negative incentives 58. Negative incentives include taxes, fees, and various charges. In the Czech Republic, the

Air Protection Act imposed fees for air pollution for the operators of very large, large and medium-sized sources and small stationary sources. For large sources fees were paid into the State Environmental Fund, which then promoted projects intended primarily to reduce emissions. For small sources, the fees went directly to the municipality and were earmarked for environmental protection. Germany applied a range of dissuasive market measures including road user charges for heavy goods transport and emission-based vehicle taxes. Further planned measures included the reduction of the distance-related tax refund for commuters and the equalisation of fuel tax on petrol and diesel. In Estonia, a plant that emitted more than was stipulated in its permit was subject to higher taxes.

59. In Lithuania, charges on pollutants discharged to the atmosphere from stationary and mobile pollution sources were introduced through the 1991 Law on Pollution Charge. Energy plants with a capacity exceeding 1MW (0.5 MW if solid fuel was used) must possess an environmental permit. Charges on pollution from stationary sources were paid according to the amount of pollutants actually emitted during a reporting period. If the polluter implemented measures to reduce pollutant emissions by at least 5 per cent from the maximum allowable, it would be exempted from the charge on the pollutants. Exemptions were valid for the period of implementation of the air pollution abatement measures, but not more than 3 years. 60. In Switzerland, two taxes were introduced in 2000. One was applied to VOCs whereby CHF 3 (approximately 2 euros) per kg of VOC was to be paid on imports of solvents. The second was on fuel with a sulphur content higher than 0.1%. Another dissuasive economic tool applied in Switzerland was the distance-related heavy-duty fee introduced in 2000. This followed the European norms (EURO 1, 2 or 3) according to the emission category. In Slovenia, taxes were applied to waste, depending on the level of methane emissions.

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INCENTIVES ARE POSITIVE OR NEGATIVE Incentives are either financial incentives or regulations Database of State Incentives for Renewables and Efficiency, 07 (North Carolina State University, http://www.dsireusa.org/faq/faq.cfm?&CurrentPageID=9&EE=1&RE=1) What types of renewable energy incentives does DSIRE track? The DSIRE project tracks information on state, utility, local, and selected federal incentives that promote the use of renewable energy technologies. For more information on federal incentives, see What federal incentives does DSIRE track. On the DSIRE website, incentives are grouped into two categories as follows: (1) Financial Incentives: tax incentives, grants, loans, rebates, industry recruitment, bond programs, and production incentives. (2) Rules, Regulations, & Policies: public benefits funds, renewables portfolio standards, net metering, interconnection, extension analysis, generation disclosure, contractor licensing, equipment certification, solar/wind access laws, and construction & design standards (including building energy codes and energy standards for public buildings), required utility green power options, and green power purchasing/aggregation policies. Incentives include punishment and reward American Heritage, 06 (http://dictionary.reference.com/browse/incentive) in·cen·tive n. Something, such as the fear of punishment or the expectation of reward, that induces action or motivates effort.

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INCENTIVES ARE POSITIVE OR NEGATIVE Incentives are positive or negative external outcomes designed to effect production or consumption decisions ICEM, 03 - International Centre for Environmental Management (“Lessons From Global Experience”, Chapter 4, http://www.mekong-protected-areas.org/mekong/docs/tlp-04.pdf) There are several meanings of the term “incentive” as applied to environmental management and natural resource use. In the simplest sense, incentives provide an inducement to action (or to inaction). In eco-nomic terms, incentives are the external factors that determine production or consumption decisions, whether the economic unit is an individual, household, community or some other entity. Although incen-tives are usually considered to be financial rewards and penalties, economists prefer to consider them in a broader context of economic decision-making. They are “the positive and negative changes in outcomes that individuals perceive as likely to result from particular actions taken within a set of rules in a particular physical and social context” (Ostrom, Schroeder, and Wynne 1993). Types of incentives For economists the term “incentives” incorporates both positive and negative incentives, which take a carrot and stick approach to promoting desirable forms of development behaviour. There are direct and indirect incentives. Direct incentives are financial or other inducements and indirect incentives include both variable and enabling incentives (Knowler 1999). Variable incentives can affect the behaviour of the producer or consumer; for example, a government tax or subsidy on farm products or farm inputs will affect the relative advantages of various agricultural prod-ucts. This will in turn affect the demand for additional land and, potentially, increase the pressure on protected areas. Enabling incentives are those policy and institutional factors that form an enabling environment for the production and consumption of goods and services. In the case of protected areas and adjacent commu-nities, examples of important enabling incentives relating to natural resource use include the provision of land tenure, credit, information, education and technology. Incentives — whether direct or indirect — are deemed “perverse” where they work against their purported aims. An example is an incentive that leads to deforestation, where the objective is to increase forest cover; or one that enriches the wealthy at the cost of local communities, where the objective is to reduce poverty. Incentives can include negative aspects like taxes Dyson et al, 03 - International Union for Conservation of Nature and Natural Resources (Megan, Flow: The Essentials of Environmental Flows, p. 67) Understanding of the term ‘incentives’ varies and economists have produced numerous typologies. A brief characterization of incentives is therefore warranted. First, the term is understood by economists as incorporating both positive and negative aspects, for example a tax that leads a consumer to give up an activity that is an incentive, not a disincentive or negative incentive. Second, although incentives are also construed purely in economic terms, incentives refer to more than just financial rewards and penalties. They are the “positive and negative changes in outcomes that individuals perceive as likely to result from particular actions taken within a set of rules in a particular physical and social context.”80 Third, it is possible to distinguish between direct and indirect incentives, with direct incentives referring to financial or other inducements and indirect incentives referring to both variable and enabling incentives.81 Finally, incentives of any kind may be called ‘perverse’ where they work against their purported aims or have significant adverse side effects. Incentives can be negative Convention on Biodiversity, 07 (“Negative Incentive Measures” http://www.cbd.int/incentives/negative.shtml) Negative incentive measures or disincentives are mechanisms designed to discourage activities that are harmful for biodiversity. Examples of disincentives are user fees or pollution taxes.

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INCENTIVES ARE POSITIVE OR NEGATIVE Incentives can be negative Driesen, 98 - Assistant Professor of Law, Syracuse University College of Law (David, 55 Wash & Lee L. Rev. 289, “Is Emissions Trading an Economic Incentive Program?: Replacing the Command and Control/Economic Incentive Dichotomy,” Spring, lexis) An economic incentive program can be defined as any program that provides an economic benefit for pollution reductions or an economic penalty for pollution. Defining economic incentives to include both positive and negative incentives includes pollution taxes in the definition. n155 Does command and control regulation qualify as an economic incentive program under this definition? Imagine a pure command and control law. The law commands polluters to perform specific pollution reducing acts, but provides no penalties for non-compliance. This law would probably motivate little or no pollution reduction, because polluters could violate the commands without consequence. n156 Command and control regulation only works when an enforcement mechanism exists. n157 Traditional regulation relies upon a negative economic incentive a monetary penalty for non-compliance as the principle inducement to comply with regulatory requirements, true command and control requirements, such as work practice standards, and the more common performance standards. n158 Indeed, a traditional regulation's success depends heavily upon the adequacy of these monetary penalties. n159 Incentives are positive or negative Laffer, 07 - Laffer Associates, Supply Side Investment Research (Arthur, “GLOBAL WARMING: MINIMIZING THE ECONOMIC IMPACT FROM CARBON TAXES,” 7/13, http://www.arduinlaffermoore.com/PDF/2007%2007%2013%20Global%20Warming%20Minimizing%20the %20Economic%20Impact%20From%20Carbon%20Taxes.pdf) The theory of incentives provides the basis for designing a carbon tax that minimizes its adverse economic impacts. Incentives can be either positive or negative. They are alternately described as carrots and sticks or pleasure and pain. Whatever their form, people seek positive incentives and avoid negative incentives. The principle is simple enough: If an activity should be shunned, a negative incentive is appropriate and vice versa. In the realm of economics, taxes are negative incentives and government subsidies are positive incentives, subject to all the subtleties and intricacies of the general theory of incentives. People attempt to avoid taxed activities—the higher the tax, the greater their attempt to avoid. As with all negative incentives, no one can be sure how the avoidance will be carried out. With respect to the carbon tax, by increasing the relative price of carbon producing activities, the carbon tax discourages its use—which is consistent with the environmentalists’ goals. However, what about the damage to the economy? The key answer to this question depends upon what the government does with the money. Incentives are positive and negative Ostrum et al, 01 - Workshop in Political Theory and Policy Analysis, Indiana University (Elinor, “Aid, Incentives, and Sustainability: An Institutional Analysis of Development Cooperation”, http://www.asdi.org/shared/jsp/download.jsp? f=Stud02-01.pdf&a=2429) The dictionary definition of an incentive is “that which incites or encourages; a motive; a stimulus” (MacMillans Modern Dictionary). Thus, the concept implies both an external stimulus and an internal motivation. In institutional analysis, one uses the term to refer to rewards and punishments that are per-ceived by individuals to be related to their actions and those of others. The payments people receive or costs they have to pay, the respect they earn from others, the acquisition of new skills or knowledge are all external stimuli that may induce more of some kinds of behavior and less of other kinds. Donors use a variety of external stimuli in their effort to change behavior of officials and beneficiaries in recipient countries. Perceived rewards and punishments can motivate individuals to take actions that are genuinely productive for all involved. The positive incentives within a well-structured, competitive market for private goods where private rights are well enforced, for example, lead most participants to invest in activities that help themselves while generating benefits for others. Incentives are consid-ered perverse when they lead individuals to avoid engaging in mutually pro-ductive outcomes or to take actions that are generally harmful for others.

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LIST OF “ALTERNATIVE ENERGY INCENTIVES” List of alternative energy incentive mechanisms Montana Environmental Quality Council, 04 (“Alternative Energy Sources to Fuel Montana's Future?”, http://www.aeromt.org/PDFs/2004energyreport.pdf The National Wind Coordinating Committee through the National Conference of State Legislatures (NCSL) commissioned a study in 1999 that reviewed and analyzed state policy options that supported wind energy development.1 This analysis, although focused on wind energy, provides an extremely logical framework that can be applied generally to most alternative energy incentive policies, both at the state and federal level. Figure 2-1 illustrates a noninclusive inventory of alternative energy incentives and policies currently used in the U.S.2 Relying heavily on the NCSL report, Table 2-1 summarizes descriptions and explanations of each incentive policy type.3 These incentives run the gamut from heavy governmental involvement to market-based approaches. The effectiveness of these incentives is not analyzed in this report.

Figure 2-1. General Alternative Energy Incentive Policy Categories Tax Incentives

< Production Tax Credits < Investment Tax Credits < Sales Tax Reductions < Property Tax Reductions < Accelerated Depreciation

Direct Cash Incentives

< Production Incentives < Investment Incentives (Grants)

Low-Cost Capital Programs

< Government-Subsidized Loans < Project Loan Guarantees < Project Aggregation

Distributed Resource Policies

< Standard Contracts for Small Distributed Projects < Net Metering < Line Extension Policies

Customer Choice Opportunities

< Utility-Supplied Renewable Energy Pricing Options < Alternative Energy Marketing from Retail Electricity Sellers < Aggregated Consumer Purchases < Fuel Source Disclosure Requirement and Certification

General Environmental Regulations

< Externality Valuation in Resource Planning < Externality Valuation in Environmental Dispatch < Emission Taxes < Emission Caps/Marketable Permits

Other Policies

< Government Purchases < Site Prospecting, Review, and Permitting < Renewable Portfolio Standard < Auctioned Contracts < Performance-Based Rate-Making

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LIST OF “ALTERNATIVE ENERGY INCENTIVES” List of alternative energy incentive mechanisms Montana Environmental Quality Council, 04 (“Alternative Energy Sources to Fuel Montana's Future?”, http://www.aeromt.org/PDFs/2004energyreport.pdf) Table 2-1. Alternative Energy Incentive Policy Descriptions and Explanations POLICY TYPE Tax Incentives

Description/Explanation

Production Tax Credits

A production tax credit provides an investor or owner of the qualifying alternative energy property with an annual tax credit based upon the amount of energy produced or generated. An investment tax credit allows an investor of an alternative energy project to reduce its tax obligation by some portion of the amount invested in the project. Exemptions or reductions in state or local sales taxes that apply to the transfer or exchange of energy, material, and land assets reduce the overall tax burden for alternative energy projects. Exemptions or reductions in state or local property taxes decrease the tax burden for alternative energy projects. Some assets lose value over time. Tax depreciation attempts to approximate the loss of asset value over time by allowing a portion of the investment to be deducted from taxable income in any given year.

Investment Tax Credits Sales Tax Reductions

Property Tax Reductions Accelerated Depreciation

Direct Cash Incentives Production Incentives Investment Incentives (Grants)

Direct production incentives can take the form of direct cash subsidy or price support payment based on energy production, not capital investment. Investment incentives can take the form of direct cash payment to defray capital costs of energy projects.

Low-Cost Capital Programs Government-Subsidized Loans Project Loan Guarantees

Project Aggregation

Debt costs can affect as well as determine whether an alternative energy project is built. Government can lower the cost of debt by providing direct low-cost loans. Project loan guarantees provide government-backed assurance or security to a lender that the loan will be repaid. This provides risk insurance for the project costs. Combining multiple alternative energy projects can in some instances decrease project financing. Project aggregation services can be provided by multiple entities, including government, nonprofit organizations, or private companies.

Distributed Resource Policies Standard Contracts for Small Distributed Projects

Net Metering

Line Extension Policies

Long-term standard power purchase contracts with predefined interconnection requirements with, in some cases, fixed power purchase rates for sellers of alternative energy that meet certain size, type, and ownership requirements. Standard contracts simplify negotiations, reduce transaction costs, speed the contracting process, improve chances of project financing, and treat all sellers of alternative energy equally. A policy mechanism that allows electricity customers to install their own gridconnected alternative energy generation system and allows the customer to be billed only for the net electricity consumed over the entire billing period. If the customer produces more electricity than is consumed, the customer receives credit against future electricity consumption. Historically, utility customers have subsidized line extensions for new customer hook-ups. Usually, customers are granted a free footage allowance within which the costs are borne entirely by the utility and its customers.

Customer Choice Opportunities Utility-Supplied Renewable Energy Pricing Options

Alternative Energy Marketing from Retail Sellers Aggregated Consumer Purchases Fuel Source Disclosure Requirement and Certification

Some utility customers are willing to pay a premium, if given the choice, to buy renewable energy. Providing customers with a choice creates a voluntary market for renewable energy. In a restructured electricity market, some retail suppliers of electricity have used alternative energy as a marketing tool to differentiate products. Aggregation of small customers to purchase alternative energy creates increased bargaining power and resources to purchase alternative energy at lower prices. Differentiating alternative energy from other sources of energy through disclosure

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37 of energy generation sources provides information to customers that allow those customers to make a choice on the type of energy they want to consume. Certifying the fuel source means verifying that the production of alternative energy has occurred. Certification may also refer to an endorsement by a particular entity.

General Environmental Regulations Externality Valuation in Resource Planning

Externality Valuation in Environmental Dispatch Emission Taxes

Emission Caps/Marketable Permits

Taking into account in selecting energy resources the full social costs of the energy resource during resource planning and acquisition, usually through an integrated resource planning process. Taking into account the full social costs when deciding which energy resources should be dispatched (utilized). The Clean Air Act gives states the ability to use market mechanisms such as emission charges or taxes as a way to comply with federal environmental standards. The Clean Air Act provides states with the authority to impose emission caps along with marketable permits. This type of program involves setting a limit for total emissions of a particular pollutant and then allocating emission allowances to individual sources.

Other Policies Government Purchases

Site Prospecting, Review, and Permitting

Renewable Portfolio Standard

Auctioned Contracts Performance-Based Rate-Making

Direct governmental purchases of alternative energy can help foster alternative energy development. The impact of governmental purchases can be powerful, given that public institutions are some of the largest buyers in the country. This refers to a number of activities that a state can undertake to help prepare and facilitate alternative energy development. These include resource assessments, distribution and transmission studies, advanced environmental analysis, zoning, and site permitting. Under this type of policy, a state would require every retail power supplier to support a specific amount (i.e., 10%) of energy produced from alternative energy sources. Auctioned contracts are requests for proposals (rfp) that can be used to facilitate the use of alternative energy resources. Performance-based rate-making decouples utility profits from costs and, instead, ties profits to performance indices that can include a resource diversity index to stimulate alternative energy resources.

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INCENTIVES INCLUDE MARKET MECHANISMS Incentives include the use of market mechanisms to influence behavior change OECD, 03 - Organization for Economic Cooperation and Development (Working Party on Global and Structural Policies, “PERVERSE INCENTIVES IN BIODIVERSITY LOSS”, 10/30, http://www.oecd.org/dataoecd/50/17/19819811.pdf) OECD (1996) defines incentives to broadly include those measures that make use of the price system and market forces to achieve their objectives. Governments use incentive measures in a variety of public policy contexts to achieve socially desirable outcomes as efficiently as possible. In many instances, those incentives will have unforeseen consequences — some of which may be harmful. For such cases, the incentive can be considered “perverse”. For biodiversity, perverse incentives are important issues that have been identified as being particularly relevant to its conservation and sustainable use. More specifically, the Convention on Biological Diversity (CBD) describes perverse incentives as:1 ...a policy or practice that encourages, either directly or indirectly, resource uses leading to the degradation of biological diversity. Hence, such policies or practices induce unsustainable behavior that reduces biodiversity, often as unanticipated side effects as they were initially designed to attain other objectives. Several common types of perverse incentives are usually identified as: environmentally perverse government subsidies; persistence of environmental externalities; and, laws or customary practices governing resource use.