Use Stimulus Package to Assist Consumers with Rising Energy Costs

February 4, 2008

• Print
• Email
• Text-size: A A A
• Share:

Rising energy costs act like a tax on consumer consumption and reduce demand in the economy. The economic stimulus package should therefore include aid directed at helping consumers cover higher energy costs as part of a series of measures to encourage energy efficiency and spur green job growth. These green steps would not only strengthen the economy in the short term; they would move America toward a new low-carbon future and boost its long-term economic competitiveness.

The first step would be to fund fully the Low-Income Housing Energy Assistance Program, or LIHEAP, to the level authorized by the Energy Independence and Security Act, which is $5.1 Billion in FY 2008. The “heating-cooling affordability gap” is estimated to be over $10 billion. Another step would be to encourage consumers to purchase energy-efficient appliances by extending the energy efficient appliance credit (from the energy tax provisions removed from the 2007 Energy Bill right before passage), and provide a tax credit for individual spending (not through an employer) on public transit.

For more information on CAP's ideas to spur the economy with clean energy solutions:

• Capturing the Energy Opportunity: Creating a Low-Carbon Economy

For information on other economic stimulus policy ideas, see:

• A Practical and Progressive Economic Stimulus and Recovery Plan, from the Action Fund

To speak with our experts on this idea, please contact:

For TV, Sean Gibbons, Director of Media Strategy
202.682.1611 or sgibbons@americanprogress.org
For print, John Neurohr, Press Assistant
202.481.8182 or jneurohr@americanprogress.org
For web, Erin Lindsay, OnlineMarketing Manager
202.741.6397 or elindsay@americanprogress.org