2025/01/24 by Joseph E. Aldy · 1 citation
Economics, Econometrics and Finance · Energy · #Clean Water Act #Clean energy #Climate Change Policy and Economics #Economics #Energy (signal processing) #Energy, Environment, and Transportation Policies #Fiscal Policy and Economic Growth #Inflation (cosmology) #Key (lock) #Macroeconomics #Natural resource economics #Public economics
paper · doi:10.1086/733762
openalex publication_date 2025/01/24 · openalex created_date 2025/10/10 · openalex updated_date 2026/05/03
The Inflation Reduction Act (IRA) could deliver more than 1 trillion in tax expenditures and outlays targeting clean energy deployment, but considerable uncertainty characterizes the economic, emissions, energy, and fiscal implications of the law. I review the features of the political system governing implementation, the regulatory system overlaying performance standards, the innovation responding to IRA incentives, and the energy networks in which IRA-supported investments operate to identify the key factors influencing the IRA’s outcomes. Drawing from past research and policy experience, I illustrate how these factors could play out and how future program evaluation could reduce uncertainty and inform better climate policy.