House Republicans are considering changes to federal energy subsidies that could generate $515 billion in revenue. In a new article, Philip Rossetti and David Kemp, a policy analyst at the Cato Institute, argue that repealing the Inflation Reduction Act’s (IRA) green subsidies would be a fiscally responsible move—claiming the current policies are far more expensive for taxpayers than originally projected.

“These costs might be defensible if the subsidies substantially reduced greenhouse gas emissions, but they haven’t,” the authors write. They add that many of the subsidies “don’t fund new energy projects but instead pay for already-planned developments or upgrades to existing renewable facilities.”

To speak with Kemp about this, please contact mmiller@​cato.​org.