Monday, October 20, 2008

Energy Efficiency Means Big Bucks

The University of California today issued a report concluding that if California improves energy efficiency by just 1 percent per year, proposed state climate policies will increase the Gross State Product (GSP) by approximately $76 billion, increase real household incomes by up to $48 billion and create as many as 403,000 new jobs.

Titled, "Energy Efficiency, Innovation, and Job Creation in California," the study's author is U.C. Professor David Roland-Holst.

According to the University's official announcement:

"Our analysis provides solid evidence that California's legacy of energy policy has grown the economy, created jobs and put billions of dollars into the pockets of consumers," commented U.C. Professor David Roland-Holst. "At this pivotal moment in history, as global markets teeter on the financial edge, our study reveals the economic power of energy innovation and efficiency, and the promise for California if the state redoubles its efforts as proposed in the Draft Scoping Plan to implement the Global Warming Solutions Act (AB 32).

Using detailed data on the changing economic structure over the period 1972-2006, the study examines one of the most potent catalysts of efficiency-based economic growth: household reductions in per capita electricity use. Because it represents over 70 percent of Gross State Product (GSP), household consumption is the most powerful driver of economic activity in the state, and household expenditure patterns are the leading determinant of state energy dependence and employment. "