Tax increase affect investment in the wind industry

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Reference no: EM131065589

A recent study estimated the elasticity of investment in wind energy with respect to the user cost of capital to be the about -1.5. In 2013 the top tax rate on dividends from wind energy investments increased from 15% to 23.8%. How does this tax increase affect investment in the wind industry? (hint:use19.5 to compute the user cost of capital for each tax rate, then take the ratio and subtract 1 to get the percent change in the user cost of capital.)

Reference no: EM131065589

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Tax increase affect investment in the wind industry : A recent study estimated the elasticity of investment in wind energy with respect to the user cost of capital to be the about -1.5. In 2013 the top tax rate on dividends from wind energy investments increased from 15% to 23.8%. How does this tax incr..

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