Report makes case for clean power tax credits
New and extended clean energy tax subsidies in the stalled Build Back Better legislation would slash power sector emissions and provide big net benefits, a new analysis argues.
Driving the news: The University of Chicago's Energy Policy Institute and the Rhodium Group modeled the House-approved version under two tech cost scenarios and three estimates of the social cost of carbon.
Why it matters: Cumulative U.S. power sector CO2 emissions are 13%-22% lower in 2050 compared to estimates absent the credits, they conclude.
- "This corresponds to a 64-73% reduction in 2031 electric power emissions below 2005 levels," it states.
- "Cumulatively, the benefits from the policies range from $335 billion to $1.8 trillion, while the costs range from $130 billion to $309 billion."