Inflation Reduction Act of 2022: Modeling Major Climate and Energy Provisions
Experts from RFF, Energy Innovation, the REPEAT Project, and Rhodium Group discuss new analyses that project the bill’s potential impacts on US households and economy-wide emissions reductions.
On July 27, Senate Majority Leader Chuck Schumer (D-NY) and Senator Joe Manchin (D-WV) released a new deal for a reconciliation package, the Inflation Reduction Act of 2022. The proposal includes $369 billion for new climate and energy investments over the next decade. What does the broad package mean for US climate ambitions—and Americans’ pocketbooks?
Modeling experts from Resources for the Future (RFF), Energy Innovation, Princeton University’s REPEAT Project, and Rhodium Group have examined the legislation’s climate and energy provisions and projected their effects on US emissions reductions and costs for US retail electricity consumers. At an RFF Live webinar on August 10, 2022, these experts discussed their analyses, key provisions in the legislation, and their work to inform the conversation surrounding this landmark proposal.
Jennifer Michael is a senior adviser at RFF. Michael’s work spans the Research and Policy Engagement program, helping to connect RFF experts with policymakers and develop new strategies for engagement.
Karen Palmer is a Senior Fellow at Resources for the Future and an expert on the economics of environmental, climate and public utility regulation of the electric power sector. She also serves as the director of the Future of Power Initiative.
Issue Brief — Aug 3, 2022
Retail Electricity Rates under the Inflation Reduction Act of 2022
In this issue brief, RFF researchers model the impact of the proposed Inflation Reduction Act of 2022 on consumer electricity prices, finding that it reduces the average American's electricity bill by $170-$220 a year.
Press Release — Aug 4, 2022
Inflation Reduction Act Will Decrease and Stabilize Household Electricity Prices
In a comprehensive power sector analysis, RFF researchers find that the Inflation Reduction Act would save households approximately $170–$220 annually and reduce electricity price volatility.