By Dan Estabrook – October 20, 2008
There’s a great article in today’s New York Times about how going green can boost an economy by $44.6 billion…
California has never been shy about manipulating of its free trade market. In fact, the state has lost 25,000 jobs since 1977 and $1.6 billion in electric power industry income alone! Sounds like the state should never have meddled?
Think again. If California had never enacted stricter regulations, it would not have created 1.5 million jobs needed to meet boosted efficiency standards for appliances and buildings. And workers would not have earned $44.6 billion more as a result. This equation does not include consumers’ savings from owning more energy-efficient appliances, by the way.
These results come from a new study out of the Center for Energy, Resources and Economic Sustainability at the University of California, Berkeley:
Professor Roland-Holst said that he based his calculations on residential spending on electricity over the last 30 years, factoring in both the decrease in per-capita demand for electricity — now 40 percent below the national average — and the increase in California’s electrical rates, which were about 40 percent above the national average in June, the latest month for which data is available. Household spending represents more than 70 percent of the gross state product.
Historically, Professor Roland-Holst said, the decrease in per-capita demand for electricity outstripped the increase in rates. Much of the economic growth, the study said, was driven by both efficiency standards for large appliances like refrigerators and for residential and commercial buildings.
This study provides a great case study why regulating to green may make sense. Read more here.