CAN WE SAVE ENERGY BY TAXING IT?

A principal goal of U. S. energy policy is to prevent energy prices from rising as much as it is feared they will. Conservation has been seized upon as a principal initiative, and the two most important components of President Carter's policy - both stimulated by the goal of conservation - are the investment tax credit and taxes on energy sources. The present article considers the political and economic issues raised by the two principal thrusts to conservation in the current National Energy Plan.