Feb 9, 2022 - Energy & Environment

Report makes case for clean power tax credits

Cumulative U.S. power sector CO2 emissions
Adapted from an EPIC and Rhodium Group report; Chart: Axios Visuals

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."

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