Examining the Financial, Social and Technological Dimensions of U.S. Industrial and Energy Innovation Strategy

Part of the Low Carbon Growth project

For the first time in U.S. history, a low-carbon recovery is broadly envisioned as an approach to economic stimulus. In fashioning a new approach, the Biden administration has pledged to consider the reality that the U.S. economy is not serving American social, equity, or competitiveness goals. This project explores which stimulus measures can best serve a low-carbon economic recovery that will prioritize sustained employment and equitable social distribution of benefits. We will examine the efficacy of past low-carbon U.S. stimulus energy policy measures in four specific areas: energy RD&D investments, loan guarantees for energy projects, tax credits for low-carbon technologies, and green banks.In our assessment, we consider contribution to economic growth, innovation performance (cost and efficiency of technologies), carbon mitigation, energy security, job creation, social and geographic equity, and inclusion.

Policy Recommendations for US Lawmakers

The pace and characterization of the energy transition will vary from location to location in the United States, making a one-size fits all federalized program unfit to meet the challenge of replacing both energy sources, budgets, and jobs. To decipher how to best create a fair stimulus that addresses these challenges, Climate Policy Lab has embarked on reassessment of the historical lessons of energy and stimulus policy to inform a reset. Based on knowledge gaps identified through the literature reviews and roundtables, CPL offers four policy briefs that recommend how to generate clean energy innovation and deployment in a manner that also dovetails with achieving a just transition that generates optimum geographic and equitable social distribution of benefits. Access the policy briefs and their corresponding Climate Smart blog posts below:

• Supporting Low-Carbon Energy Through a New Generation of Tax Credits by Gilbert Metcalf

  • Read the corresponding blog post, “How To Improve Clean Energy Tax Credits in U.S. in New Infrastructure Legislation,” by Amy Myers Jaffe

• How a US Green Bank Could Make the Economy Greener and Fairer by Kelly Sims Gallagher and Stephany Griffith-Jones

  • Read the corresponding blog post, “Congress Should Approve a Federal Green Bank to Promote a Just Energy Transition,” by Kelly Sims Gallagher and Amy Myers Jaffe

• Promoting Inclusive and Impactful Research, Development, and Demonstration Programs by Kelly Sims Gallagher and Gregory Nemet

  • Read the corresponding blog post, “US RD&D: Make it more inclusive, more impactful,” by Kelly Sims Gallagher

• US Loan Guarantee Program Needs Deeper Clarification of Goals and Metrics by Amy Myers Jaffe