New Analysis: Clean Air Initiative Would Save New York’s Working Families Nearly $7 Billion and Yield Economic Benefits in Every Corner of the State

NEW YORK — New Yorkers will realize significant economic benefits, including household savings and new job creation, with the Clean Air Initiative, a new report from Environmental Defense Fund and Greenline Insights finds.  

The report comes as New Yorkers continue to await the launch of the Clean Air Initiative: an economywide cap-and-invest program that works by simultaneously putting a limit on the tons of pollution companies can emit — “cap” — while requiring them pay for each ton of emissions, funding clean energy projects that create health and cost-saving benefits for communities — “invest.” At the same time, energy affordability remains an issue that’s top of mind for New York voters.  

“Our analysis shows that the vast majority of New Yorkers are missing out on savings and economic opportunities across the state due to delays in implementing the Clean Air Initiative,” said Kate Courtin, Senior Manager for State Climate Policy & Strategy. “The sooner this program is implemented, the sooner communities will see billions in investments that will expand access to cleaner, cheaper energy, cut pollution and create healthier, more resilient communities.” 

The report finds that, over its first decade, the Clean Air Initiative would deliver: 

• $6.9 billion in net savings, or an average of $1,060 per household earning $200k per year or less — about 85% of households in the state.  
• Over 300,000 new jobs, with job growth strongest in fields like construction and transit as a result of investments in clean transportation services, decarbonization of buildings, and the build-out of clean energy infrastructure.
• $48 billion in economic growth supported by program investments across the state. 

"The data is clear that the Clean Air Initiative is a potent job creator and economic development tool.” said Jonah Kurman-Faber, Founder and Principal at Greenline Insights. “The program's investments play to the state's economic strengths and provide meaningful financial benefits to an overwhelming majority of the population." 

Analysis of the Clean Air Initiative’s impact across New York's ten economic development regions shows that all regions of the state experience economic gains from CAI-funded investments: 

• Regions experiencing the highest per-household net savings for working families include Mid-Hudson, Western New York and Long Island.
• Per-capita growth and job creation are strongest in rural regions (e.g. North Country, Mohawk Valley and Southern Tier), and absolute levels of these benefits occur in major population centers (e.g. New York City, Long Island and Mid-Hudson).   

The study also finds that increased ambition would drive even greater benefits. Household savings, job creation and economic output benefits are approximately doubled under a higher ambition scenario modeled. 

Overall, the study reinforces previous analyses from NY Renews, Resources for the Future and Switchbox by finding that the Clean Air Initiative would deliver substantial statewide economic growth and hundreds of thousands of jobs while simultaneously providing meaningful financial benefits to households, particularly among the state’s most economically vulnerable.