Operating a cryptocurrency exchange system is a highly computationally intensive activity. It requires massive levels of energy consumption—roughly equal to countries such as Angola, Iceland, or Cuba—with a correspondingly high level of CO₂ emissions. PERI researchers Izaura Solipa and Gerald Epstein examine the impact of Bitcoin and other cryptocurrencies on both energy levels and the environment, arguing that, at present, cryptocurrencies are creating significant environmental costs without any clear social or economic benefit stemming from this largely speculative activity. They then outline alternative applications of the underlying blockchain technology that could rather advance climate change mitigation programs.

Proposals for carbon pricing have met with criticism from environmental justice advocates on the grounds they (i) fail to reduce emissions significantly, (ii) fail to reduce the disproportionate impacts of hazardous co-pollutants on people of color and low-income communities; (iii) hit low-income households harder than richer households; and (iv) commodify nature. PERI researchers James Boyce and Michael Ash, along with Brent Ranalli, discuss how carbon pricing can be designed to address these concerns. They describe ways through which carbon pricing policies can be designed to be both environmentally effective and environmentally just.

On July 27, the U.S. Senate Democrats released the Inflation Reduction Act (IRA). This measure aims to reduce U.S. CO₂ emissions by 40 percent as of 2030 through over 100 separate climate, energy, and environmental justice programs. It also aims to lower health care costs and reduce the federal deficit.  PERI researchers Robert Pollin, Chirag Lala and Shouvik Chakraborty estimate the U.S. employment impact of the climate-based programs. They find that, over a 10-year period, the IRA will generate an average of about 912,000 jobs per year through combined annual public and private investments at $98 billion.