Avoiding Unduly Concentrated Clean Energy Markets

The IRS will need help to avoid unintended adverse effects in implementing the Inflation Reduction Act’s clean energy provisions.The Biden Administration has a two-part strategy to mitigate climate change. In one part, it seeks to minimize the role of fossil fuels in the transportation sector by encouraging people to switch to electric vehicles. In the other part, it aims to minimize the role of fossil fuels in generating electricity by encouraging generating companies to switch from carbon dioxide emitting fossil fuels to carbon-free sources, such as solar and wind.Both parts of this two-part strategy must be implemented simultaneously and aggressively to have the desired effect on the rapidly changing climate. But the successful implementation of this plan faces many serious obstacles. One of these derives ultimately from the fact that people who consume fossil fuels directly or…

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