Next 10’s new report analyzes electricity productivity – how much GDP manufacturers produce for every dollar spent on electricity – and finds that California generates $59 in GDP for every dollar spent on electricity, compared to $38 for the rest of the nation, leading every other state except Connecticut.
Aug. 15, 2015
Interaction between SB 32 and CEQA would likely, at a minimum, result in the immediate imposition of a Zero Net Energy (ZNE) standard on new construction in California. The initial effect would be a sharp reduction in new construction activity, which would persist until developers and contractors acquired a sufficient level of expertise and capacity to satisfy the stringent new ZNE requirements. Such a slowdown would have ripple effects throughout the entire economy, potentially reducing gross state product by $18 billion, and employment by 285,000 jobs.
The report notes that the state’s renewable-energy mandates and carbon cap-and-trade program have forced electricity prices to rise, as they have implemented a “regressive energy tax, imposing proportionally higher costs in certain counties, such as California’s inland and Central Valley regions, where summer electricity consumption is highest but household incomes are lowest.”
In this report, the Institute for Applied Economics of the Los Angeles County Economic Development Corporation (LAEDC) conducts a regional dependency study of the refinery industry, evaluating the ripple effect of a potential reduction of supply of refined petroleum products and byproducts in California.
The extent of income inequality in any region such as the Bay Area is a result of local, state and national policies, and is exacerbated by economic factors such as technological progress and globalization. And, while local policies alone are largely inadequate to address the issue of extreme inequality, there are a variety of options that can ameliorate the effects. This report includes data on Bay Area income inequality, comparisons to the state and nation, a discussion of the root causes of inequality, and a set of local policy options.