Economic Impact Analysis of Long-Term Energy Scenarios and Disadvantaged Communities
Evaluating the impacts of a transforming electricity system in disadvantaged communities.
Berkeley Economic Advising and Research, LLC
Recipient
Berkeley, CA
Recipient Location
9th
Senate District
14th
Assembly District
$248,905
Amount Spent
Completed
Project Status
Project Result
The final report was published in June 2018 at [a href="https://www.energy.ca.gov/2018publications/CEC-500-2018-013/CEC-500-201…] and the results were presented at the June 14, 2018, Integrated Energy Policy Report workshop on Building Decarbonization. This research yielded four general insights: [br /]
1. Energy system investments are a potent catalyst for income and job growth. [br /]
2. Technology adoption benefits can far exceed the associated direct costs. [br /]
3. Energy savings from implementing the policies are substantial and induce broad-based job creation. [br /]
4. Statewide savings from averted death and disease are comparable to the direct costs of the energy system buildout.
The Issue
The Energy Commission initiated a set of coordinated long-term energy scenario studies (EPC 14-072, EPC 14-074, EPC 14-069) to assess implications of California's long-term climate goals for the energy system, including the building and transportation sectors, infrastructure, and the overall economy. Results of the Long-Term Energy Scenario (LTES) project have the potential to inform policy and planning in the energy sector. However, analyses of impacts to disadvantaged communities require estimation of impacts at fine geographical resolution, e.g., census level. The LTES models are not designed to model spatially disaggregated impacts at a level suitable for informing impacts to DACs.
Project Innovation
In this project, researchers performed computer-aided analysis of implications to disadvantaged communities from multiple potential energy scenarios, from the present to 2050. Implications include, but are not limited to, potential disproportional economic impacts, job opportunities, and potential increases in electricity rates.
Project Benefits
This research brought the Long Term Energy Scenario work in line with state policies directed at improving access to clean energy technologies and benefits for disadvantaged communities.
Economic Development
Project results show net job creation and income growth, as well as valuable public health benefits, at all income levels and in all counties. For example, model projections predict 170,000 more jobs created in disadvantaged communities and 406,000 more jobs in nondisadvantaged communities by 2030. These numbers imply that 30 percent of new jobs will be added in disadvantaged communities, which have only 25 percent of state population.
Key Project Members
