Is Place-Based Green Industrial Policy Effective ? Evidence from the Inflation Reduction Act
Overview & Synopsis
Is place-based green industrial policy effective? This paper examines the Inflation Reduction Act’s Energy Community provisions, which provide spatially targeted incentives for renewable energy investment. Using a difference-in-differences design with investment and job vacancy data, it shows that the probability of solar investment increases by 0.14 percentage points in targeted areas, equivalent to a 144% increase relative to its counterfactual level. Wind investment shows no response. Solar employment gains are modest and wind employment is unaffected. These findings suggest place-based incentives can stimulate green investment in designated locations, but may be less effective at generating local jobs.
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Document Information
| Document Title | Is Place-Based Green Industrial Policy Effective ? Evidence from the Inflation Reduction Act |
|---|---|
| Author / Organization | Keuzenkamp, Joep, Mazza, Jacopo, Rijkers, Bob, Stapleton, Katherine |
| Subject & Discipline | Policy Research Working Paper |
| Categories | Economics & Development |
| Publication Year | 2026 |
| License / Rights | Creative Commons Attribution 4.0 (CC BY 4.0) |
| Resource Verification | Listed PDF (Verification Pending) |
| Original Host Website |
World Bank Documents & Reports
(documents.worldbank.org)
|
| File Format | application/pdf (Portable Document Format) |
| Language | EN |
| Catalog ID | DOC-160993 |
| Original Source Link | Visit Source Page on documents.worldbank.org » |