A preliminary analysis examining the potential macroeconomic impact of funding the Diesel Emissions Reduction Act as part of the 2009 stimulus package
Commissioned by the Emissions Control Technology Association, this analysis quantifies the potential impact of funding the Diesel Emissions Reduction Act (DERA) as part of the 2009 stimulus package. It examines the impact of various diesel emissions reduction measures funded under DERA, including the installation of diesel retrofits on existing vehicles and the replacement of older vehicles. Direct, indirect, and induced impacts on output, jobs, and household earnings in approximately 20 industries throughout the economy are provided. It concludes that fully funding DERA is likely to be an efficient and effective use of stimulus funds, and will provide a direct injection of funds into highly vulnerable industries, such as auto parts manufacturing and heavy-duty vehicle manufacturing.