Macroeconomic Impacts of the California Global Warming Solutions Act on the Southern California Economy

Dan Wei and Adam Rose
Authors registered in the RePEc Author Service: Adam Zachary Rose

Economics of Energy & Environmental Policy, 2014, vol. Volume 3, issue Number 2

Abstract: We evaluate the potential regional macroeconomic impacts of a set of ten greenhouse gas mitigation policy options intended to enable the Southern California Association of Governments to comply with the State's greenhouse gas reduction targets. The Regional Economic Models, Inc. Policy Insight Plus Model, was applied in the analysis by carefully linking technical and microeconomic aspects of each mitigation option to the workings of the regional economy. We took into account key considerations, such as how investment in mitigation options would displace ordinary private business investment and the time-phasing of renewable electricity generation. Our results indicate that the combined ten mitigation policy options could create an annual average employment gain of 21 thousand jobs over the entire planning period from now to 2035, but could also have a negative net present value impact of $17 billion in regional GDP. In the paper, we explain this and other anomalies. Sensitivity analyses of key assumptions and parameters for the Renewable Portfolio Standard indicate that the results are robust. They also provide policy-makers with insights into how to improve the macroeconomic impact of this major policy option.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.iaee.org/en/publications/eeeparticle.aspx?id=70 (text/html)
Access to full text is restricted to IAEE members and subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aen:eeepjl:eeep3_2_07rose

Ordering information: This journal article can be ordered from
http://www.iaee.org/ ... ons/eeepjournal.aspx

Access Statistics for this article

More articles in Economics of Energy & Environmental Policy from International Association for Energy Economics Contact information at EDIRC.
Bibliographic data for series maintained by David Williams ().