By Ben Geman
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.”