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The Energy Investment Allowance (EIA) has been a key instrument in driving energy efficiency projects in the Netherlands. However, the current high deduction rate risks attracting free-riders who would have undertaken the investments regardless of the incentive. A refined approach could enhance the scheme’s effectiveness.
Suggested Adjustment:
Reduce the deduction rate from the current level to around 40%, striking a balance between attractiveness and efficiency. This change would:
- Minimize free-riding behavior.
- Preserve the financial appeal of the program for businesses genuinely needing support.
Posted : 05/12/2024 5:32 pm
