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New UC Berkeley Study Shows Relationship Between Energy Policies and Job Creation October 22, 2008

Posted by Tom in Energy costs, energy savings, Government policies, Studies.
Tags: , , , , ,

The University of California, Berkeley, recently released a report that shows the relationship between California’s energy policies and its economic sustainability. While a popular misconception holds that policies on energy efficiency can be financial drains to implement, this new study shows that in reality, policies on energy efficiency substantially increase jobs and promote the state’s energy and economic independence.

California is well-known for its aggressive energy policies and the report, entitled “Energy Efficiency, Innovation, and Job Creation in California,” provides compelling support for the continuation of this aggressive position, since it will not only benefit the environment by reducing carbon emissions, but continue to stimulate the state’s economy by encouraging the consumption of in-state, employment-intensive goods and services. As a result, more jobs are created – approximately $1.5 million FTE (full-time equivalent) jobs in the past 30 years with a total payroll of over $45 billion, and additionally saving consumers @56 billion in energy costs.

Other interesting points the report makes:

  • The California Air Resources Board (CARB) package of policies proposed to meet the emissions reductions mandated by the Global Warming Solutions Act (AB 32) can be achieved with net economic benefits.
  • The proposed package of policies in the state’s Draft Scoping Plan could potentially achieve 100 percent of the greenhouse gas emissions reduction targets mandated by AB 32 while increasing the Gross State Product (GSP) by about $76 billion, increasing real household incomes by about $48 billion and creating as many as 403,000 new efficiency and climate action driven jobs.
  • The first 1.4 percent of annual efficiency gain produced about 181,000 additional jobs, while an additional one percent yielded 222,000 more. It is reasonable to assume that incremental efficiency gains will be more costly, but they have more intensive economic growth benefits.

To read the full report, visit the research section on the Next 10 website and download the PDF.



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