| March 24, 2010 |  |
New CARB Economic Analysis Underscores AB 32 Benefits
BERKELEY (March 24, 2010) – A new California Air Resources Board economic analysis released today concludes that state climate policies likely will substantially increase California’s reliance on clean energy sources, dramatically reduce global warming pollution, and maintain steady economic growth at the same time.Jasmin Ansar, a climate economist with the Union of Concerned Scientists, said the analysis adds to a growing body of research showing that clean energy and climate policies will protect the environment and the economy.
“This is the most thorough examination of AB 32 to date,” Ansar said. “Climate policies like this law can help California transition from dirty fossil fuels with volatile prices toward cleaner energy sources, which should lead to more stable prices. AB 32 is a catalyst for putting California on the cutting edge of the nation’s clean energy future.”
AB 32’s positive impact should be even greater than what the new analysis found, she added, because CARB did not factor in the substantial economic and health benefits from reducing air pollution.
The new CARB report examines how AB 32 will affect small businesses in the state, concluding that on average they will not suffer economically. Small businesses are not directly regulated by AB 32 and only will experience the law indirectly through a slight increase in the cost of energy. For most small businesses, however, energy costs are a small proportion of their total expenditures. Many California small businesses will be able to avoid higher energy bills by conserving energy and improving their facilities’ energy efficiency.
CARB’s results are corroborated by the Brattle Group’s December 2009 report, commissioned by UCS, “The Economic Impacts of AB 32 on California Small Businesses,” which found that the overall impact of AB 32 on state small businesses would be negligible and very manageable.
The Union of Concerned Scientists puts rigorous, independent science to work to solve our planet's most pressing problems. Joining with citizens across the country, we combine technical analysis and effective advocacy to create innovative, practical solutions for a healthy, safe, and sustainable future.
