Are environmentally friendly projects likely to increase the market price?

The US government seems to retreat from its previous environmentally friendly projects, some rumours suggest that the US government may put tariffs on solar related imports. When the US government increases the costs for the solar industry and other environmentally friendly industries, thus increasing the prices for these environmentally friendly products, the prices for environmentally friendly energy industries' substitutes, fossil fuels, are likely to increase as well.

Usually, when there is an increase in the oil price, there is an inflationary pressure in the world economy, as an increase in the oil price implies an increase in production as crude oil is the main resources for energy as well as the main raw materials for many other products. However, the increase of tariffs does not imply there is an increase in the world outputs, as it increases the costs of production and supply and lowers the market supply. Therefore, it is possible to have an increase in the market price due to the reduction in the supply side rather than the increase in the demand side, which I usually see as an unhealthy inflation. Increasing spending on environmentally friendly projects is very likely to lower the price levels as it can lower the oil price in the short term.

In the long term, as there is a natural cap for natural resources, the supply of natural resources will eventually diminish in the long term, so the prices for natural resources will eventually rise in the long term. Environmentally friendly projects can lower the price levels in the long term.

Overall, I think environmentally friendly projects will lower the price levels in the short term as well as the long term.