Strong Clean Energy Policies Will Grow the Economy and Create 78,000 New Jobs in Pennsylvania

PITTSBURGH — On the eve of U.S. Senate deliberations on clean energy and climate legislation, Pennsylvania Business Leaders for a Clean Energy Economy released a new economic analysis that finds the strongest federal policy could create up to 78,000 jobs in Pennsylvania, while increasing real household income by $1,092 and growing the state economy by $4.3 billion. The new study, co-released with E2, the national investor coalition Ceres and the Clean Economy Network, was conducted by the University of California in collaboration with University of Illinois and Yale University and provides an in-depth, state-by-state examination of the impacts of the three pillars of federal legislation: energy efficiency, renewable energy and limits on carbon pollution.

“This report shows that the stronger the federal energy and climate policies, the more Pennsylvania stands to gain economically,” said Matthew Mehalik, PhD, Program Manager for Sustainable Pittsburgh and also lead for the Pennsylvania Business Leaders for a Clean Energy Economy (PBLCEE). “Those who say we cannot afford to take action now do not understand the opportunity we stand to lose by not acting. There is an emerging multibillion dollar global clean energy market and Pennsylvania is poised to capture it.”

Using EAGLE, a new state-of-the-art forecasting model, the study assesses the economic impact on the state of Pennsylvania of climate and energy policies currently being considered by Congress. The study models both moderate and aggressive implementation of policies that set strong standards for and provide incentives for greater investments in renewable energy, that set standards for energy efficiency and create a market-based program to reduce carbon emissions.

Key Pennsylvania findings include:

Aggressive policy implementation creates greater economic and job growth in Pennsylvania by 2020 than would moderate or no implementation
The strongest policies could generate up to 78,000 additional jobs in Pennsylvania, increase Pennsylvania’s real Gross Domestic Product by $4.3 billion more than it would be without climate and energy policy, and increase real household income by $1,092 per year (as measured in 2008 dollars) by 2020
Even moderate implementation drives economic growth in Pennsylvania, generating $2.4 billion in additional GDP, 46,000 additional new jobs and $637 in additional household income
Interestingly, the more carbon-dependent state economies have more to gain from climate action, assuming they adopt balanced policies that combine all three pillars (energy efficiency, renewable energy and carbon pollution limits)

According to the study, Clean Energy and Climate Policy for US Growth and Job Creation: An Economic Assessment of the American Clean Energy and Security Act and the Clean Energy Jobs and American Power Act, the legislation would create between 918,000 and 1.9 million new jobs nationally, increase annual household income by $487-$1,175 per year, and boost GDP by $39 billion-$111 billion by 2020.

These gains are over and above business-as-usual economic growth.

“The US market could be the most promising one in the world, with the right policies in place,” said Michael Peck, Founder of MAPA Group and External Relations Director with Gamesa USA. “Wind energy, if encouraged to put down roots in the US, could become a major economic driver and source of new manufacturing of durable goods. Gamesa’s plants in Pennsylvania, for example, have already begun exporting production to Mexico. Countries that institute policies to encourage wind energy on their own soil are likely to become international wind power leaders.”

Gamesa entered the US market in 2001, and now employs more than 900 people here, the vast majority is in manufacturing. The Cambria County manufacturing plant employs 300 workers, and the Bucks County facilities employ 400. Roughly 200 are employed in support and operations at its headquarters in Philadelphia and related development activities in Oxford Valley.

“Climate change poses a real threat to businesses that rely on agricultural products, as Starbucks does with coffee,” said Jim Hanna, Starbucks Director of Environmental Impact. “We believe addressing climate change will help companies like ours reduce operating costs and mitigate future economic instability due to extreme weather conditions and agricultural loss.” Starbucks York roasting plant is its largest in the country.

Results from the EAGLE study are consistent with projections by agencies such as the Environmental Protection Agency, Congressional Budget Office, and the Department of Energy – all of which show substantial economic benefits from more efficient energy use.

“Improving energy efficiency cuts costs for transportation, heating, cooling and other energy demands,” commented David Roland-Holst, the study’s author. “Money saved on energy puts dollars back into household bank accounts, and gives consumers the freedom to spend on things they want. This spending represents 70 percent of Gross State Product, so it represents potent growth and job stimulus for the Pennsylvania economy.” – Pennsylvania Business Leaders for a Clean Energy Economy