The Sound of Economics

How should Europe react to the Inflation Reduction Act?

Feb 9, 2023

49:48

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Highlights

AI Chapters

Episode notes

The Green Deal - What Can We Do About It?

03:11

Should We Do the Same as in the US?

03:04

The EU's Concerns About Sub-the-Dism

03:10

Introduction

5min

Tax Credits

2min

What Are the Requirements for Leasing Vehicles?

2min

Is There a Tax Credit for Producing Clean Energy?

3min

Is the IRA Going to Be Reducing US Greenhouse Gas Emissions?

5min

Is There a Threat of Crowding Out of Green Technology?

5min

Is There a Pigouvian Argument for Green Subsidies?

4min

The EU's Concerns About Sub-the-Dism

3min

Is the IRA Unambiguously Good?

3min

10.

The EU's Response to the IRA Tax Credit

3min

11.

Should We Do the Same as in the US?

3min

12.

The Green Deal - What Can We Do About It?

3min

13.

How Important Is IRA?

4min

14.

The WTO and Climate Change

5min

The Inflation Reduction Act (IRA) of 2022 is a milestone in US climate policy. Unfortunately, it also contains protectionist elements, such as linking green subsidies to local content requirements (LCRs). This is prohibited under WTO rules. Legislating such LCRs is a first for the United States, and a blow to the multilateral trading system.

In this episode of the Sound of Economics, Bruegel director Jeromin Zettelmeyer invites Kimberly Clausing and Sébastien Jean to discuss the policies laid out in the IRA and the impact it will have on the United States and other countries. They also discuss the global responses to the act and how EU policy makers in particular should react.

Our new policy brief explains what is in the IRA, the impact on the EU and other economies, and how the EU should react.