Treasury Stats Show IRA Benefitting Low Income Communities

Of course, a lot of clean energy is being developed in rural communities. Rural communities almost uniformly are poor communities.
If you want to support rural communities, you support clean energy.
At bottom of the post, see how green policies make a difference in urban communities as well.

US Treasury:

In the analysis, Treasury economists observe that investments in Inflation Reduction Act-related sectors of the economy since the law passed grew especially quickly in energy communities—communities historically dependent on fossil energy jobs and tax revenues, including areas with closed coal mines or coal-fired power plants, as well as communities that have significant employment or local tax revenues from fossil fuels and higher than average unemployment. This initial data suggests the Inflation Reduction Act is achieving its goal of revitalizing communities at the forefront of fossil fuel production where potential exists, but opportunity has been scarce.

“President Biden’s Investing in America agenda and the Inflation Reduction Act are achieving their goals of revitalizing communities that have been overlooked and need public investment to unlock private capital. Treasury analysis shows that funding is going where it’s needed most across the country, not just to the coasts or to wealthy communities,” said Secretary of the Treasury Janet L. Yellen. “The American economy is more productive when communities can realize their full potential, and more than one year into implementation of the law, there is strong evidence that’s happening.”

The analysis also concluded that investments across all technologies supported by the Inflation Reduction Act have been largely landing in economically disadvantaged counties with below average wages, household incomes, employment rates, and college graduation rates. This analysis updates earlier studies from the Treasury with more granular data produced by the Massachusetts Institute of Technology and the Rhodium Group. 

• 81% of clean investment dollars announced since the Inflation Reduction Act passed have been for projects in counties with below-average weekly wages.
• 86% of clean investment dollars since the Inflation Reduction Act passed are landing in counties with below-average college graduation rates.
• 70% of clean investment dollars since the Inflation Reduction Act passed are in counties where a smaller share of the population is employed.
• 78% of clean investment dollars since the Inflation Reduction Act passed are in counties with below-average median household incomes.
• The share of clean investment dollars going to low-income counties rose from 68% to 78% when the Inflation Reduction Act passed. 

Treasury’s analysis shows that investments in the clean energy economy are disproportionately benefitting economically disadvantaged communities. This is a prime example of what Secretary Yellen calls “modern supply-side economics,” with economic research showing investments in communities like these have the highest “bang for the buck” by unlocking untapped opportunities.