In this paper, authors Timothy Considine and Edward Manderson look at the energy, economic and environmental effects of three different alternative energy scenarios on the state of California. Among their findings:
California faces important energy policy choices: to move ahead with its planned renewable energy targets and accept negative economic impacts that come with higher-cost electricity or to reduce the damage by switching focus to domestic electricity generation fueled by natural gas. California also has the option to develop its own production of natural gas and oil reserves.
Meeting renewable generation targets will increase electricity rates and reduce consumption below baseline forecasts. We project that in 2015, consumers will pay $3.2 billion more for electric power than under the baseline scenario. These expenditures rise to over $4.6 billion during 2020 and then fall slightly, averaging $3.7 billion per year thereafter. Although some jobs will be added initially, after 2014 the net gains in employment and value added turn negative as the drag on economic growth from higher energy prices offsets any employment and output gains from building and operating the renewable energy facilities.
See full Article.
Wednesday, July 04, 2012
Balancing fiscal, energy and environmental concerns: Policy options for California's energy and economic future
In this paper, authors Timothy Considine and Edward Manderson look at the energy, economic and environmental effects of three different alternative energy scenarios on the state of California. Among their findings:
California faces important energy policy choices: to move ahead with its planned renewable energy targets and accept negative economic impacts that come with higher-cost electricity or to reduce the damage by switching focus to domestic electricity generation fueled by natural gas. California also has the option to develop its own production of natural gas and oil reserves.
Meeting renewable generation targets will increase electricity rates and reduce consumption below baseline forecasts. We project that in 2015, consumers will pay $3.2 billion more for electric power than under the baseline scenario. These expenditures rise to over $4.6 billion during 2020 and then fall slightly, averaging $3.7 billion per year thereafter. Although some jobs will be added initially, after 2014 the net gains in employment and value added turn negative as the drag on economic growth from higher energy prices offsets any employment and output gains from building and operating the renewable energy facilities.
See full Article.
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