Forecasters say the president’s clean-energy incentives will be more effective than they had originally expected, in part because of new federal regulations.
The estimated price tag for President Biden’s clean-energy and climate agenda has effectively doubled since the Inflation Reduction Act was signed into law a year and a half ago.
Nearly all of the increase is attributable to forecasters’ belief that the law will be more popular than they had originally expected, in part because of the way the Biden administration wrote certain regulations. That rising price tag may actually be good for reducing greenhouse gas emissions — and for the U.S. economy.
The Inflation Reduction Act, which Democrats passed on a party-line vote in summer 2022, includes tax credits and other subsidies for low-emission energy technologies that are meant to help wean the nation from fossil fuels.
Many of those credits are effectively unlimited, meaning the more people or companies choose to claim them, the more they will add to federal deficits. The uncapped credits include incentives for manufacturers to build solar-panel or wind-turbine factories, and for consumers to buy electric vehicles. Budget scorekeepers have to estimate how popular those credits will be, in order to forecast how much they’ll cost.
You must log in or register to comment.
Biden has talked the climate talk, but is he walking the walk?
US holds first of several oil and gas auctions as COP28 gets underway
Edit: I love how people are giving Biden excuses, clearly a cult. Funny no one in the West/US gave the UAE and other Arab countries the same benefit of the doubt when it came to oil deals during COP28. Hypocrisy? Racism? It doesn’t matter, I like pointing it out.
From your article beyond the headline:
Biden’s Inflation Reduction Act (IRA), a climate change law passed last year, made oil and gas auctions a prerequisite for renewable energy development. It also, however, requires higher royalty rates and minimum bids meant to boost taxpayer returns.
Biden’s Interior Department has issued far fewer new leases than previous administrations. The agency issued 527 leases in fiscal years 2021 and 2022 combined, compared with 2,740 in the previous two years, during the Trump administration, according to BLM data.
Issuing literally any leases at all is suicidal.
