Power sector impacts of the Inflation Reduction Act of 2022
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Published:2023-11-30
Issue:1
Volume:19
Page:014013
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ISSN:1748-9326
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Container-title:Environmental Research Letters
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language:
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Short-container-title:Environ. Res. Lett.
Author:
Bistline John E TORCID, Brown Maxwell, Domeshek Maya, Marcy Cara, Roy NicholasORCID, Blanford GeoffreyORCID, Burtraw DallasORCID, Farbes Jamil, Fawcett AllenORCID, Hamilton AnneORCID, Jenkins JesseORCID, Jones RyanORCID, King Ben, Kolus HannahORCID, Larsen John, Levin Amanda, Mahajan MeganORCID, Mayfield ErinORCID, McFarland James, McJeon HaewonORCID, Orvis RobbieORCID, Patankar NehaORCID, Rennert Kevin, Robson SallyORCID, Roney ChristopherORCID, Russell Ethan, Schivley GregORCID, Shawhan DanielORCID, Steinberg DanielORCID, Victor Nadejda, Wenzel Shelley, Weyant John, Wiser RyanORCID, Yuan Mei, Zhao AliciaORCID
Abstract
Abstract
The Inflation Reduction Act (IRA) is regarded as the most prominent piece of federal climate legislation in the U.S. thus far. This paper investigates potential impacts of IRA on the power sector, which is the focus of many core IRA provisions. We summarize a multi-model comparison of IRA to identify robust findings and variation in power sector investments, emissions, and costs across 11 models of the U.S. energy system and electricity sector. Our results project that IRA incentives accelerate the deployment of low-emitting capacity, increasing average annual additions by up to 3.2 times current levels through 2035. CO2 emissions reductions from electricity generation across models range from 47%–83% below 2005 in 2030 (68% average) and 66%–87% in 2035 (78% average). Our higher clean electricity deployment and lower emissions under IRA, compared with earlier U.S. modeling, change the baseline for future policymaking and analysis. IRA helps to bring projected U.S. power sector and economy-wide emissions closer to near-term climate targets; however, no models indicate that these targets will be met with IRA alone, which suggests that additional policies, incentives, and private sector actions are needed.
Funder
Bloomberg Philanthropies, the William and Flora Hewlett Foundation DOE William and Flora Hewlett Foundation National Renewable Energy Laboratory Alliance for Sustainable Energy, LLC EPRI Office of Policy Lawrence Berkeley National Laboratory Bloomberg Philanthropies
Subject
Public Health, Environmental and Occupational Health,General Environmental Science,Renewable Energy, Sustainability and the Environment
Reference43 articles.
1. Inflation Reduction Act of 2022, H.R. 5376, 117th Congress;U.S. Congress,2022 2. Summary: estimated budgetary effects of Public Law 117–169, to provide for reconciliation pursuant to title II of S. Con. Res. 14;Congressional Budget Office,2022 3. Building a clean energy economy: a guidebook to the Inflation Reduction Act’s investments in clean energy and climate action;The White House,2023 4. A turning point for US climate progress: assessing the climate and clean energy provisions in the Inflation Reduction Act;Larsen,2022 5. Preliminary report: the climate and energy impacts of the Inflation Reduction Act of 2022;Jenkins,2022
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