Table 2. Homeowner Tax Subsidies for Hot Water Heating, New York State

Capital cost is $1,075 per KW in 1978 dollars, increasing 14% per year over
the construction period. AFUDC is 7%; cumulative cost is $3.1 billion.
Rate of return is 11.25%. Annual costs are rounded to nearest million dollars.
Each unit cost increases over time according to specific inflation assumptions.

Table 4. Subsidies to Energy Production over the 1947-77 Period,

References

1. Based upon work by Kathy Cole, Department of Agricultural Economics, Cornell University. Generally, water heating costs with fuel oil are somewhat more expensive than with gas (R.H. Bezdek, A.S. Hirshberg, and W.H. Babcock, "Economic Feasibility of Solar Water and Space Heating," 23 March 1979 Science, pp.1214-1220.) 2. This assumes gas prices increase 13.5% per year in real terms, and electricity prices rise 6.5% per year. The average increase in New York City has been 18% per year from 1974 to 1978 for gas and 6% for electricity.

3. San Diego County, "Solar Ordinance Feasibility Analysis," December, 1978; SolarCal Council, "Toward a Solar California," Sacramento, 1979; California Energy Commission, "Solar Energy in California," Sacramento, 1978.

4. This discussion of nuclear economics is based upon my research sponsored by the California Energy Commission. The opinions expressed here are my own, and do not represent the views of the Commission or its employees.

5. For example, Rossin and Rieck (18 August 1978 Science, pp. 582-859) estimated nuclear power costs at 3.54/KWh in 1977 dollars. At 7% inflation, this would be 7.44/KWh in 1988 dollars, 2.1¢/KWh higher than the cost in Table 3.

6. Bezdek, et al, p. 1219.

7. Analysis by K. Cole.

8. Solar Energy Policy Committee, "Domestic Policy Review of Solar Energy," February, 1979, Table 1.

9. B.W. Cone, et al, "An Analysis of Federal Incentives Used to Stimulate Energy Production," Richland, Washington, December, 1978 (revised).

10. Table 3.

11. Private communication. A recent study of rural-suburban wood burning in New York indicates that those households using wood burning stoves report energy use reductions ranging from 45% for fuel oil to 58% for LP gas; Roger Pellerin, "The Wood Energy Survey, 1979," Department of Agricultural Engineering, Cooperative Extension, Cornell University, June, 1979.