The $369 billion climate and tax package Democrats in the Senate proposed this week could have far-reaching effects on the kinds of cars that Americans drive, where those cars are made and how the country produces its energy. The legislation also aims to break China’s hold on battery supply chains.

The bill, which came back from the dead after Senator Joe Manchin III of West Virginia unexpectedly dropped his opposition, could greatly accelerate changes already underway in the automotive and energy industries.

The proposal aims to simultaneously fight climate change and energize domestic manufacturing. For the most part, it would do so through tax breaks and other incentives — a carrot, rather than stick, approach that is likely to go down easier in corporate boardrooms and with voters…

…Tax credits are viewed as one of the least expensive ways to reduce carbon emissions. The benefits are worth four times their cost, according to calculations by the Energy Policy Institute at the University of Chicago…

Continue reading at The New York Times…

 

Areas of Focus: Energy Markets
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Energy Markets
Well-functioning markets are essential for providing access to reliable, affordable energy. EPIC research is uncovering the policies, prices and information needed to help energy markets work efficiently.
Renewable Energy
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Renewable Energy
Lower technology costs and supportive public policies are driving an increase in renewable energy in markets around the world. EPIC research is assessing the costs, benefits, and efficiency of policies...
Climate Change
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Climate Change
Climate change is an urgent global challenge. EPIC research is helping to assess its impacts, quantify its costs, and identify an efficient set of policies to reduce emissions and adapt...
Climate Law & Policy
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Climate Law & Policy
As countries around the world implement policies to confront climate change, EPIC research is calculating which policies will have the most impact for the least cost.
Climate Economics
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Climate Economics
Climate change will affect every sector of the economy, both locally and globally. EPIC research is quantifying these effects to help guide policymakers, businesses, and individuals working to mitigate and...
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Renewable Energy
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Renewable Energy
Lower technology costs and supportive public policies are driving an increase in renewable energy in markets around the world. EPIC research is assessing the costs, benefits, and efficiency of policies...