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I think more important than removing dependencies on oil/gas is that energy will be much cheaper, reducing the cost of everything. One other aspect of the IRA
by epistasis 4y ago
I think more important than removing dependencies on oil/gas is that energy will be much cheaper, reducing the cost of everything.
One other aspect of the IRA is that it heavily incentivizes building the new manufacturing capacity in the US. If US manufacturing is not competitive with other parts of the world, this could be less efficient than a world where the best manufacturers do more of it. So it has the potential to lower growth rates, but personally I think the tech advances for cost reduction of solar/wind/storage will likely be so massive as to overwhelm any potential US-based inefficiencies.
In order to correct it, we could tie some of these benefits back to the manufacturers being able to compete on the global market; I.e. if they can't export X% of their product successfully in a competitive market, then the subsidies taper out. But we will see.