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A Preliminary Review of the American Recovery and Reinvestment Act’s Clean Energy Package

Resources for the Future Discussion Paper No. 12-03

30 Pages Posted: 18 Jan 2012  

Joseph E. Aldy

Harvard Kennedy School; National Bureau of Economic Research; Resources for the Future; Harvard University - Harvard Kennedy School (HKS)

Date Written: January 13, 2012

Abstract

The American Recovery and Reinvestment Act included more than $90 billion in strategic clean energy investments intended to promote job creation and promote deployment of low-carbon technologies. In terms of spending, the clean energy package has been described as the nation’s “biggest energy bill in history.” To provide a preliminary assessment of the Recovery Act’s clean energy package, this paper reviews the rationale, design, and implementation of the act. The paper surveys the policy principles for clean energy stimulus and describes the process of crafting the clean energy package during the 2008–2009 Presidential Transition. Then, the paper reviews the initial employment, economic activity, and energy outcomes associated with these energy investments and provides a more detailed case study on the Recovery Act’s support for renewable power through grants and loan guarantees. The paper concludes with lessons learned.

Keywords: economic stimulus, tax credits, energy loan guarantees, climate change, renewable energy

JEL Classification: E61, Q48, Q54

Suggested Citation

Aldy, Joseph E., A Preliminary Review of the American Recovery and Reinvestment Act’s Clean Energy Package (January 13, 2012). Resources for the Future Discussion Paper No. 12-03. Available at SSRN: https://ssrn.com/abstract=1986948 or http://dx.doi.org/10.2139/ssrn.1986948

Joseph E. Aldy (Contact Author)

Harvard Kennedy School

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HOME PAGE: http://www.hks.harvard.edu/about/faculty-staff-directory/joseph-aldy

National Bureau of Economic Research

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Resources for the Future

79 JFK Street
Cambridge, MA 02138
United States
617-496-7213 (Phone)

HOME PAGE: http://www.hks.harvard.edu/about/faculty-staff-directory/joseph-aldy

Harvard University - Harvard Kennedy School (HKS) ( email )

79 John F. Kennedy Street
Cambridge, MA 02138
United States

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