POLITICO: "Greenflation... But Is That Good, or Bad?"
POLITICO's Long Game and Global Insider newsletters mentioned RFF's analysis of the Inflation Reduction Act's renewable tax credits.
Global Insider
Resources for the Future backs Wagner’s view with an analysis that finds the bill’s tax credits for wind and solar will boost generations enough to insulate people from natural gas price swings over the next decade. Dave Rapson, a Federal Reserve economist and professor at the University of California, is skeptical: "Hopes that subsidizing EVs will somehow reduce inflation anytime soon aren’t supported by basic economics," he said.
The Long Game
The idea is like a jump pool shot — cause some inflation now in order to cut it longer-term.
Resources for the Future backs Wagner’s view with an analysis that finds the bill’s tax credits for wind and solar will boost generation enough to insulate people from natural gas price swings over the next decade.
Power Switch
The measure is designed to supercharge clean energy projects by allocating billions of dollars to lower the cost of wind, solar and electric vehicles, making them more accessible to individuals and businesses.
That's good news for renewable energy and EV-producing companies, consumers looking to go green and utilities with carbon-reduction goals. Researchers project that the bill will significantly cut retail electricity costs, saving ratepayers up to $220 annually.
