California's clean energy and clean air standards could save the average household up to $670 in 2020 if oil and natural-gas prices spike, according to a new study by three economists.
The study, ‘Shockproofing Society: How California's Global Warming Solutions Act (A.B.32) Reduces the Economic Pain of Energy Price Shocks,’ calculates the savings from added protections against energy price spikes achieved from implementing A.B.32 through effective standards adopted by the California Air Resources Board (CARB).
Savings occur from reduced demand for and dependence on imported oil and natural gas through a suite of standards that result in more efficient cars that cost less to drive, greater alternative fuel options, more renewable energy, better-planned neighborhoods that give people transportation options, and buildings that use less energy, the report says.
Study conclusions include the following:
– By increasing energy efficiency and providing more fuel choices, A.B.32 implementation will save California consumers and businesses $4.8 billion if a moderate price shock occurs in 2020. The savings increase to $9.6 billion if a large oil-price shock occurs. This translates into household savings of $337 to $670.
– Reduced dependence on fossil energy as a result of A.B.32 will cut demand for oil imports by 75 million barrels (18% decrease) in 2020, and lessen natural-gas demand by 10%. This means decreased spending in 2020 on oil and natural-gas imports by $18.8 billion if a moderate shock occurs, and by $29.6 billion if a large shock occurs.
The report was completed by the Center for Resource Solutions, Energy Independence Now and Environmental Defense Fund.
To read a full version of the study, visit resource-solutions.org.
SOURCE: Center for Resource Solutions