Measuring the Inflation Reduction Act’s (IRA) Impact on Decarbonization and Equity: An Integrated Assessment

Abstract

The Inflation Reduction Act of 2022 represents the United States’ most comprehensive climate legislation to date, allocating $369 billion toward clean energy investments and environmental justice initiatives. This study provides a systematic analysis of the IRA’s dual objectives: accelerating national decarbonization efforts while advancing environmental equity. Through multi-model analysis and comprehensive policy evaluation, we assess the Act’s effectiveness in achieving emissions reductions while addressing historical environmental injustices in disadvantaged communities. Our findings demonstrate that the IRA will reduce economy-wide emissions by 43-48% below 2005 levels by 2035, while directing unprecedented federal resources toward environmental justice through $3 billion in dedicated funding streams. However, significant implementation challenges remain, particularly in ensuring equitable distribution of benefits and achieving the Biden administration’s 50% emissions reduction target by 2030.