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Energy efficiency, innovation, and job creation in California

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  • Roland-Holst, David W.

Abstract

Global climate change poses significant risks to the California economy. Recognizing and responding to these threats, Governor Schwarzenegger signed Executive Order #S-3-05 (Schwarzenegger 2005) which called for a 30 percent reduction below business-as-usual of greenhouse gas emissions by 2020 and 80 percent below 1990 levels by 2050. In September 2006, the California legislature passed and Governor Schwarzenegger signed into law the historic Global Warming Solutions Act (AB 32), which mandates a first-in-the-nation limit on emissions that cause global warming. In June 2006, the California Air Resources Board (CARB) released a “Draft Scoping Plan” – the policy roadmap to meet the emissions reduction target of 169 Million Metric Tons of Carbon (MMTCO2) equivalent by 2020 to stabilize at 427 MMTCO2 overall. The CARB board will take up final adoption of this plan in December 2008. During the months leading up to this decision, a financial crisis of global proportions is unfolding. The state, nation and world are caught in serial market failures sparked by the collapse of the housing credit market, and there is much speculation about the impact of declining capital gains revenue on the state budget. Against this backdrop, Energy Efficiency, Innovation, and Job Creation in California analyses the economic impact of CARB’s past and future policies to reduce fossil fuel generated energy demand. California’s achievements in energy efficiency over the last generation are well known, but evidence about their deeper economic implications remains weak. This study examines the economy-wide employment effects of the state’s landmark efficiency policies over the last thirty-five years, and forecasts the economic effects of significantly more aggressive policies proposed to reduce emissions to 1990 levels by 2020.

Suggested Citation

  • Roland-Holst, David W., 2008. "Energy efficiency, innovation, and job creation in California," CUDARE Working Papers 46718, University of California, Berkeley, Department of Agricultural and Resource Economics.
    • Handle: RePEc:ags:ucbecw:46718
    DOI: 10.22004/ag.econ.46718
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    Cited by:

    1. Levinson, Arik, 2014. "California energy efficiency: Lessons for the rest of the world, or not?," Journal of Economic Behavior & Organization, Elsevier, vol. 107(PA), pages 269-289.
    2. Zachary A. Wendling & David C. Warren & Barry M. Rubin & Sanya Carley & Kenneth R. Richards, 2020. "A Scalable Energy–Economy Model for State-Level Policy Analysis Applied to a Demand-Side Management Program," Economic Development Quarterly, , vol. 34(4), pages 372-386, November.
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    9. Sanya Carley & Adrienne Brown & Sara Lawrence, 2012. "Economic Development and Energy," Economic Development Quarterly, , vol. 26(2), pages 111-123, May.
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    12. Sanya Carley & Sara Lawrence, 2014. "Energy-Based Economic Development," Springer Books, Springer, edition 127, number 978-1-4471-6341-1, April.
    13. Frederica Perera, 2017. "Pollution from Fossil-Fuel Combustion is the Leading Environmental Threat to Global Pediatric Health and Equity: Solutions Exist," IJERPH, MDPI, vol. 15(1), pages 1-17, December.
    14. Kim, Dongha & Jeong, Jinook, 2016. "Electricity restructuring, greenhouse gas emissions efficiency and employment reallocation," Energy Policy, Elsevier, vol. 92(C), pages 468-476.
    15. Dong Guo & Satyajit Bose & Kristina Alnes, 2017. "Employment implications of stricter pollution regulation in China: theories and lessons from the USA," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 19(2), pages 549-569, April.
    16. Yi, Hongtao, 2013. "Clean energy policies and green jobs: An evaluation of green jobs in U.S. metropolitan areas," Energy Policy, Elsevier, vol. 56(C), pages 644-652.
    17. Bowen Tang & Yuanzhang Sun & Nan Zhou & Bo Shen, 2019. "Sustainable Development of Power Retailers and Industrial Parks in China’s Belt and Road Initiative," Sustainability, MDPI, vol. 11(19), pages 1-19, September.
    18. Michael Jacobs, 2012. "Green Growth: Economic Theory and Political Discourse," GRI Working Papers 92, Grantham Research Institute on Climate Change and the Environment.

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