The recent Inflation Reduction Act (IRA) imposes domestic sourcing requirements on electric vehicle (EV) tax credits. Drawing on a recent paper, we suggest that these restrictions reflect neither U.S. public opinion nor global political logic. They are causing friction between the United States and its European and Asian allies. Our research suggests that U.S. public support for EV subsidies does not depend on either economic nationalism or equity concerns. Instead, the U.S. public favors faster uptake of technologies by making the EV tax credit available to all. Similar issues are also emerging in some other IRA provisions. The IRA has placed wage and apprentice requirements on companies that want to use the 30% investment tax credits for clean energy projects, a worthy goal but difficult to meet. There is a broader question to be asked: under what conditions should decarbonization policies be made conditional on achieving other societal goals?
"Our research suggests that U.S. public support for EV subsidies does not depend on either economic nationalism or equity concerns. Instead, the U.S. public favors faster uptake of technologies by making the EV tax credit available to all."