In February, when Russia declared war against Ukraine, it affected multiple resources and pushed inflation higher globally. This war caused severe sanctions to isolate, causing the U.S. to participate in de-globalizing gas and oil exchanges with Russia. Since Russia is a top gas distributor, in March 2022, a global increase cost of gas occurred. The average price per tank increased by ten dollars per fill in less than one month in the U.S. The transportation industry has been battling high inflation concerns since 2020 and now has a new challenge with the uproar of gas prices.
This war has forced the U.S. to participate in de-globalizing specific resources, pushing inflation even higher. The sanctions on Russia and a lack of alternatives have caused the prediction of oil prices surpassing $200 a barrel. There is a global shortage of microprocessors for video games used in phones and cars. Intel has invested $20 billion in a new computer chip facility in Ohio.
Our REMI staff presented “Examine Economic & Environmental Impacts of Military Bases.” Based on a directive from the Biden Administration, they focused on the economic and environmental impacts of making military bases greener via the Base Realignment and Closure (BRAC) process.
When the Biden Administration entered the White House, they immediately set a 2030 greenhouse gas reduction target and signed an executive order to help reduce emissions created in America. The U.S. military has been a significant contributor to the nation’s carbon footprint. For example, they were responsible for approximately 52 million metric tons of carbon dioxide emissions in 2020 — more than other countries, such as Norway, Sweden, and Switzerland. As a response to climate policy priorities, the Department of Defense has plans to develop an electrified zero-emissions non-tactical vehicle fleet, to replace fossil-fueled vehicles by 2035 completely. The question is, how will this and other associated changes affect their economic footprint?
In addition, Dr. Collins provided an overview of the “A Fiscal and Economic Analysis of Medicaid Expansion in Mississippi under the Affordable Care Act” study completed by her and her team. You can view the full report by clicking here.
During this training, our analyst, Guyesha Blackshear, demonstrated how the REMI Tax PI model could assess and estimate the fiscal and economic effects of tax and other policy changes.