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Rather than extending the current investment and production tax credits for wind and solar, a less costly incentive might be to allow these industries to form master limited partnerships as a vehicle for attracting private capital.
The union representing New York City teachers jumped into the debate yesterday over how to rid troubled schools of uncertified teachers, asking the city to expand a costly incentive program intended to draw veteran teachers into those schools.
And unlike most of its rivals, which have pumped up sales with costly incentive programs and suffered big losses to do it, BMW has managed to keep its profit margins healthy.
"It is getting increasingly difficult in North America," Mr. Melich said, noting that General Motors was pressing ahead with costly incentive programs and that auto sales were down in October.
North American vehicle sales will be flat or slightly down in 2003 as the props of costly incentive programs that gave the industry its fourth-best sales year ever in 2002 are removed.
If you don't think that matters, ask Ford Motor and General Motors about how their costly incentive programs–handing out wads of cash to get people to buy their vehicles–has slaughtered these companies' bond ratings and, subsequently, their stock prices.
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Strong auto sales have not helped profitability for the Big Three, because they are propelled by costly incentives.
After an era of costly incentives, carmakers are desperate to have reasons other than low prices to recommend their cars.
Costly incentives in the second quarter had led many investors and some Wall Street analysts to fear that G.M. would post weak financial results today.
For the last two years, G.M. executives have avoided setting market share targets, insisting that they were more interested in pursuing profits than in maintaining sales volumes through costly incentives.
For most of those years, the city had a surplus of office space that led to price cutting and costly incentives to lure tenants as brokers worked to sublease or re-lease space vacated by takeover targets such as Conrail.
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