Bio: Huiqi Zhuang is an Assistant Professor at the School of Finance, Nankai University.  She received her Ph.D. in Economics from Indiana University of Bloomington in 2025. Her research focuses on Environmental Economics, Industrial Organization and Household Finance.

Abstract: Nonrefundable tax credits can make statutory rates misleading measures of policy generosity. Exploiting the 2009 removal of the U.S. residential solar credit cap, I find weaker installation growth where predicted tax constraints were greater. This evidence informs a household model with carryforwards. Holding prices and expected fiscal cost fixed, the model predicts that a 22.47% credit refundable at tax filing raises adoption by 4.27% and avoided environmental damages by 4.51% versus a 30% nonrefundable credit. Separately, standardized environmental returns are 8.69% higher in low-income than high-income areas nationwide. Improving subsidy delivery can increase adoption and environmental returns per public dollar.