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Economic Assessment for California’s Long-term Energy Scenarios (LTES)

Place: California • Dates: 2018 • Partner: CEC • Project Website: CEC Sponsored Reseach

As part of the state’s path breaking commitments to a lower carbon future, the California Energy Commission commissioned an economic analysis of California’s Long-term Energy Strategy (LTES). This integrated policy framework is designed to accelerate Greenhouse Gas (GHG) emission reductions with a combination of more renewable electric power, electrification of transportation and heating, and a wide array of technology-driven energy efficiency improvements.

Using it’s own dynamic forecasting model of the California economy, Berkeley Economic Advising and Research conducted a detailed assessment of how these low carbon energy policies would affect incomes and employment, across the state. While relatively technical, this research yielded four very general insights:

  • Energy system investments are a potent catalyst for income and job growth.
  • Technology adoption benefits can far exceed their direct costs.
  • Energy savings from the implementation of the policies are substantial and induce broad based job creation.

Statewide savings from averted mortality and morbidity are likely to be comparable to the direct costs of the energy system buildout.

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