Peck, Joe and Thorpe, Samuel I. (2025) The short-term effects of regional investment tax credits: early evidence from energy communities. Contemporary Social Science. ISSN 2158-2041
Full text not available from this repository.Abstract
The political economy of industrial policy depends on how investment-oriented policies affect economic outcomes within a political cycle. We provide new evidence on the short-term economic impacts of regional investment policy through the first empirical analysis of the Inflation Reduction Act’s energy community tax credit. We find that the credit had limited effects on unemployment, wages, and labour force participation in its first two years, although effects increase late in the sample and are stronger in communities experiencing the highest levels of investment ex post. Our findings suggest that the tangible short-run economic benefits of investment credits may be limited.
| Item Type: | Article |
|---|---|
| Additional Information: | © 2025 Academy of Social Sciences |
| Divisions: | Economic History |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HC Economic History and Conditions |
| JEL classification: | H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H25 - Business Taxes and Subsidies H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H32 - Firm R - Urban, Rural, and Regional Economics > R5 - Regional Government Analysis > R58 - Regional Development Policy Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy > Q48 - Government Policy |
| Date Deposited: | 28 Nov 2025 09:57 |
| Last Modified: | 12 Dec 2025 19:37 |
| URI: | http://eprints.lse.ac.uk/id/eprint/130354 |
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