To date, the debate on climate change policy in the US has focused primarily on the costs of action. But climate and energy policies, including a cap on emissions, a national renewable electricity standard and a green economic stimulus also come with significant economic benefits, from energy efficiency savings to opportunities for manufacturing low carbon technologies.
In this report, The Climate Group and The University of Michigan (using economic research from Deliotte) aim to shed light on one part of the potential benefits: the manufacture of low-carbon technologies in the Midwest. We do this by estimating the economic benefits generated from growth in the wind turbine component, hybrid powertrain and advanced battery markets, with climate and energy policies in place, and without. The findings reveal significant potential for job and revenue growth in these Midwest sectors.
Top Findings:
- Climate and energy policies would lead to additional market revenues of up to $12 billion, additional state and local tax revenues of up to $800 million and up to 100,000 new jobs from the wind turbine component, hybrid powertrain, and advanced battery manufacturing sectors in the Midwest by 2015.
- In the wind turbine component sector, climate and energy policies would create up to $7.1 billion in additional market revenues, $470 million in additional tax revenues and more than 61,800 new jobs in the Midwest by 2015.
- In the hybrid powertrain sector, climate and energy policies would lead to $3.8 billion in additional market revenues, $252 million in additional tax revenues and 30,900 new jobs in the Midwest by 2015.
- In the advanced battery sector, climate and energy policies would create up to $1.4 billion in additional market revenues, $90 million in additional tax revenues and 11,900 new jobs in the Midwest by 2015.
- Because we look at only three of the fifteen low-carbon technologies that the Midwest has a comparative advantage in, our findings represent only part of far greater economic benefits associated with manufacturing low carbon technologies in the Midwest.
