Why renewable subsidies are better than carbon taxes

Democrats got this one right, and economists were left in the dust.

The Inflation Reduction Act is first and foremost about creating abundance — about lowering the cost of living for the average American. It also just so happens to be the most significant piece of climate legislation in U.S. history. Climate wonks are overjoyed, and rightly so. But the IRA didn’t approach climate change the way most climate economists wanted it to. For decades, climate economists have focused rather obsessively on the idea of carbon taxes. While Democratic politicians were talking about investment and green jobs and technology, climate economists were maintaining their…

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