California Will Create Green Economic Stimulus Package By Implementing AB 32

(Sacramento, CA - December 8, 2008) California will create a green economic stimulus plan that will serve as a national model by implementing the historic Global Warming Solutions Act (AB 32), according to a new study released today. The report, Getting the Job Done Right: Employment Growth through California’s Global Warming Solutions Act (see full report and executive summary for policymakers), is timely because the California Air Resources Board (CARB) will vote on its Proposed Scoping Plan to implement AB 32 at its meeting on Dec. 11-12.
 
Conducted by M.Cubed, a research firm specializing in resource economics and public policy analysis, and commissioned by Environmental Defense Fund (EDF), the study examines recent analyses conducted by CARB and others to assess potential economic impacts of AB 32. AB 32 mandates that California cut its greenhouse gas emissions that cause global warming approximately 30 percent by 2020. The study finds that well-crafted AB 32 policies can bring significant economic benefits and new jobs to California.
 
“This analysis shows that by acting immediately and decisively to reduce global warming pollution, California can create a green economic stimulus plan that delivers benefits to businesses and consumers alike,” said James Fine, Ph.D., an economist and policy scientist for EDF, which cosponsored AB 32. “This stimulus is a critical tool to help California and the nation combat rising unemployment rates and budget shortfalls.”
 
Key findings of the study include: 
  • Implementing AB 32 is likely to increase employment in several sectors of the state’s economy, as well as associated supply chains, including biomass-based fuels, building and transportation infrastructure construction, clean technologies, environmental engineering, consumer products, information technologies, transportation and logistics, waste management, and water purification and conservation.
  • California’s friendly regulatory setting will attract additional investments in energy-related research and development. California has five of the nation’s top 10 cities for clean tech investment (San Jose, Berkeley, Pasadena, San Francisco and San Diego).
  • Several Western states (Arizona, California, Montana, New Mexico, Oregon, Washington and Utah) and Canadian provinces (British Columbia, Manitoba, Quebec and Ontario) have pledged to reduce greenhouse gas emissions as part of a Western Regional Climate Action Initiative. Regional cooperation over climate change policies significantly reduces the impetus for businesses to flee California to avoid climate pollution policy.
  • AB 32 will help California improve energy independence by establishing a more diverse energy supply system that can mitigate economic risks of single fuel-supply disruptions and improve long-term economic growth and higher employment levels.
  • Market-based policies that expand access to financing for consumers, small businesses and particularly vulnerable populations—and are designed to smooth the transition to a low-carbon economy—will spur the development of a new industry to provide that financing.
 
“By implementing AB 32 with well-designed policies, California can grow its economy, gain a competitive advantage and serve as a model for the nation to follow in the transition to a clean energy, low-carbon future,” concluded Fine.

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