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An independent study by the American Clean Power Association (ACP) reveals that the Inflation Reduction Act (IRA), passed in 2022, is expected to deliver a fourfold return on taxpayer investment, generating $1.9 trillion in economic growth over the next decade. The IRA’s provisions extend beyond clean energy, benefiting technologies such as oil, gas, hydrogen, nuclear energy, and battery storage, alongside the power, transportation, and manufacturing sectors.
One of the key outcomes of the IRA is the expansion of domestic manufacturing. The report highlights over $100 billion in new or expanded investments in clean energy manufacturing facilities across the U.S., spurring job creation and strengthening the supply chain.
Key findings of the report:
- Economic growth: The IRA will generate over $3 trillion in national economic and emission reduction benefits, compared to its $740 billion cost.
- Climate impact: Carbon emissions are projected to decrease by over 4.1 billion metric tons.
- Job creation: Clean energy jobs are expected to more than double, rising from 3 million in 2022 to 6.5 million by 2032.
- Household income: The law is anticipated to add $846 billion to household incomes over the next decade.
- Manufacturing: IRA incentives are driving investments in clean energy manufacturing and infrastructure upgrades.
The study, conducted by ICF and commissioned by ACP, used sector and macroeconomic modeling to evaluate the IRA’s economy-wide impacts. It concluded that the law will catalyze private-sector investments, modernize energy infrastructure, and bolster U.S. competitiveness in clean energy technologies, all while significantly reducing emissions.
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The findings underscore the IRA’s role in shaping the future of the U.S. economy, driving innovation, and addressing energy security and climate challenges.
Source: American Clean Power
