Smarter Finance for Cleaner Energy: Open up Master Limited Partnerships (MLPs) and Real Estate Investment Trusts (REITs) to Renewable Energy Investment

Abstract

This policy proposal makes the case for opening Master Limited Partnerships (MLPs) and Real Estate Investment Trusts (REITs) — both well-established investment structures — to renewable energy investment. MLPs and, more recently, REITs have a proven track record for promoting oil, gas, and other traditional energy sources. When extended to renewable energy projects these tools will help promote growth, move renewables closer to subsidy independence, and vastly broaden the base of investors in America’s energy economy.

Keywords: energy, renewable, MLP, REIT, wind, solar, PTC, ITC, geothermal, tax, investment, market, capital, development, market, power, electricity, renewables, green, clean, stimulus, security, environment, climate change, energy independence, carbon, climate, greenhouse, gas, mitigation, policy, finance

JEL Classification: D40, D62, E60, F01, H30, H51, H60, H70, K23, K32, L10, M13, O10, O32, O38, Q20, Q28, Q40, Q42, Q48