Energy

US clean energy tax subsidies to cost $825 billion over 10 years, CBO says

U.S. clean energy tax subsidies under President Joe Biden’s signature Inflation Reduction Act will boost U.S. budget deficits by $825 billion over the next 10 years, Congressional Budget Office director Philip Swagel said on Friday, far above the initial $270 billion 10-year estimate.

Swagel told reporters that higher cost estimates are due in part to a different budget window, 2025-2035, compared to 2022-2031 for an initial estimate when the legislation was approved in 2022.

Costs also were higher because of subsequent rule changes that increased the uptake of electric vehicle subsidies, including a leasing provision and new tailpipe emissions standards for internal combustion cars, he said.

Source : Reuters

GLOBAL BUSINESS AND FINANCE MAGAZINE

Recent Posts

The future is under the glass

Digital design increasingly confers a competitive edge in global tech markets. This column examines how…

21 hours ago

Generative AI in German firms: Diffusion, costs, and expected economic effects

The novelty and speed of diffusion of generative AI means that evidence on its impact…

21 hours ago

Immigration restrictions and natives’ intergenerational mobility: Evidence from the 1920s US quota acts

Much of the debate over the consequences of immigration restrictions for labour market outcomes of…

22 hours ago

Why inflation may respond faster to big shocks: The rise of state-dependent pricing

Macroeconomic models distinguish time-dependent pricing, where firms change prices at fixed intervals, from state-dependent pricing,…

22 hours ago

Showing up in the Alps: The economic value of Davos

Attending the World Economic Forum in Davos is costly, with estimates ranging between $20,000 and…

22 hours ago

Productivity, firm size, and why distortions hurt developing economies

In many developing countries, productive firms remain too small, while less productive firms are too…

22 hours ago