One of the good things about living in a country that doesn’t completely centralize power is that some states can try out new ideas and see how they work without forcing everyone else to sign up. I think it’s also safe to say that California has been on the vanguard of this trend, and that more often that not, these crazy liberal notions they are wont to try work out pretty well. Conveniently enough for my argument, a new study by economist David Roland-Holst shows that California’s energy efficiency policies have created more than 1.5 million jobs between 1977 and 2007, while eliminating only 25,000. What’s more, they’ve also curbed energy costs!
The basic theory underlying the stimulus effect of efficiency policy is that energy efficiency frees up disposable income to be spent elsewhere. The theory continues that because energy creation is a relatively simple economic process, energy expenditure is essentially thrown into an economic black hole. On the other, other consumer industries operate at the confluence of a much greater number of economic actors.
When the dollar goes to groceries, it animates much more job intensive expenditure chains including retailers, wholesalers, food processors, transport, and farming. Moreover, a larger proportion of these supply chains (and particularly services that are the dominant part of expenditure) resides within the state, capturing more job creation from Californians for California. Moreover, the state reduced its energy import dependence, while directing a greater percent of its consumption to in-state economic activities.
It’s important to understand that the argument for protecting the environment is best made in terms of economic interest. While communing with Earth Mother Gaea and hugging trees certainly has the correct goal in mind — the preservation of the planet we inhabit — it’s argument relies too heavily on personal morality. Rather, green infrastructure investment is good the economy, national security, and the earth.
