he graphs show the percentage of electricity production by source in 2009 and 2019 for the state of Texas. (d) The Texas state government decided to offer subsidies in 2020 for energy production by wind power in the form of a production tax credit. Explain how these government subsidies would affect the energy production by natural gas by 2030 in Texas.
The graphs show the percentage of electricity production by source in 2009 and 2019 for the state of Texas.
(d) The Texas state government decided to offer subsidies in 2020 for energy production by wind power in the form of a production tax credit. Explain how these government subsidies would affect the energy production by natural gas by 2030 in Texas.
The production or supply for a good shows the quantity that the producers desire to sell at the given price (p) level. It is directly proportional with the price of a good – as the price rises, the ss for the good increases as the producers find it profitable to supply goods at higher prices. So the supply curve is upward rising. The various determinants of supply apart from price of the good are – production costs, level of technology, expectations of future prices, subsidies, etc.
The government would subsidize the manufacture of wind energy in order to encourage its production. This is because wind energy is a renewable source of energy and production or use of this form of energy has no harmful impact on the environment.
So, rise in production of wind energy would offset the production of other power resources in the economy.
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