California Economy Will Benefit from Implementing Global Warming Solution Act, Study Shows

(Sacramento, CA - November 20, 2008) California stands to reap substantial economic benefits from implementing The Global Warming Solutions Act (AB 32), according to a soon-to-be-released study sponsored by Environmental Defense Fund (EDF). EDF economist and policy scientist, Dr. James Fine, will preview the findings of the report during his testimony today at the only public meeting by the California Air Resources Board (CARB) on its proposed implementation plan to meet AB 32’s mandate to reduce California’s greenhouse gas emissions by approximately 30 percent by 2020.

 
“As President-elect Barack Obama succinctly stated earlier this week, a strong climate policy such as AB 32 can help solve California’s energy, economic and environmental challenges,” testified Fine. “It is clear from the Air Resources Board’s economic analysis and from several other studies at the state, regional and national level, that fighting global warming delivers economic benefits and creates well-paying green jobs. This economic stimulus is particularly critical as California battles high rates of unemployment and budget shortfalls.”
 
The report sponsored by EDF was conducted by M.Cubed, a research firm specializing in resource economics and public policy analysis. It examines recent analyses CARB and other groups have conducted to assess the potential economic consequences associated with AB 32. The EDF/M.Cubed study finds that well-crafted policies are likely to result in employment growth and reinforce beneficial changes in California’s economy that have already emerged from existing energy policies. Key findings of the study include: 
 
  • California is well positioned to lead the nation’s transition to a clean energy economy because of actions taken during the past several decades.
  • The adoption of similar efforts to reduce emissions by other states that are following California’s lead – and proposed under the incoming Obama administration – can protect California jobs and give California a competitive advantage in the low-carbon economy.
  • Emphasis on renewable energy technologies will create jobs.
  • California’s friendly regulatory setting will attract increased energy-related research and development investment into the state.
  • Market-based policies that help bridge economic shifts and expand access to financing will help to minimize adverse consequences on particularly vulnerable populations.
While the AB32 scoping plan makes economic sense, it does not set out a clear course for ensuring timely implementation of land use and transportation measures that are proven to reduce both toxic and global warming pollution, such as congestion pricing and indirect source rules that cut air pollution from new development projects.
 
“CARB has more authority than this document suggests it has to ensure that proven measures such as the indirect source rule are implemented,” testified Kathryn Phillips, manager of EDF’s California Clean Air for Life Campaign. “It should establish a deadline by which CARB must develop clear guidance for air districts to ensure that those indirect source rules that districts develop capture as many greenhouse gas reductions as possible while still allowing for the housing and commercial and industrial development the state needs. It should also raise the statewide target for land use/transportation system reductions from the 5 million metric tons to at least 11 million metric tons.”

With more than 3 million members, Environmental Defense Fund creates transformational solutions to the most serious environmental problems. To do so, EDF links science, economics, law, and innovative private-sector partnerships to turn solutions into action. edf.org