While the literature on eco-social policies has grown, limited attention has been paid to subsidies and
how they are connected to different eco-social policies. In short: We believe that the organizations that
benefit from a particular green subsidy will be much more likely to support eco-social policy. We
focused on the most important trade unions & business organizations in Germany & the US. We
collected 93 documents (press releases, minutes of public meetings, & information from web pages)
and additionally, we used 15 interviews with organization representatives and with experts on the IRA.
In Germany: as we had expected green subsidies play an important role in increasing the support of
eco-social policy reforms. All of the most representative business associations & trade unions agree
that green subsidies should be used to manage the transformation process. Important for our other
argument is that the unions support green subsidies because they are only paid to companies in which
collective agreements or other forms of union representation are in place (positive-sum). In the US: we
also show support for green subsidies among American business organizations & trade unions.
Business groups see innovation & green tech gains; unions support them as subsidies are tied to pro-
labor standards (positive-sum effect).
Can the IRA's green subsidies ensure its political survival under Trump? We believe that green
subsidies may very well prove resilient in the long run, thanks to business, labor, Democratic, &
moderate Republican support.
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