America’s new electric vehicle subsidies have some carmakers upset. Others are scratching their heads. Will the EV tax credit eligibility changes found in the new Inflation Reduction Act incentivize the industry’s supply chains to diversify away from China? Will trade disputes erupt? Kristin Dziczek (Chicago Fed) joins to explain (29:49).

Episode Transcript [PDF]

Read more about the economics of EV tax credits…

  • Tamara L. Sheldon. Forthcoming. Evaluating Electric Vehicle Policy Effectiveness and Equity. Annual Review of Resource Economics.
  • David S. Rapson and Erich Muehlegger. 2022. The Economics of Electric Vehicles. NBER Working paper No. 29093 (revised), July.