Priming the Pump for Economic Recovery by Investing in Advanced Energy
State and federal governments continue to debate where and at what level to apply stimulus payments to help restart economies ravaged by the COVID-19 pandemic. Our studies show that investing stimulus funding at the state level can simultaneously boost a state’s economic activity and transform its energy footprint.
In a series of independent reports funded by Advanced Energy Economy (AEE) and similar groups, we reviewed the potential economic impacts of applying stimulus funds to develop advanced energy technologies, products, and services in 14 states, as well as at the national level.
For each state, we evaluated a unique advanced energy investment profile – a state-specific mix of energy-related industries, technologies, and policies.
- Each state had a different mix of energy efficiency programs for its consumers and businesses – but these programs had the biggest economic impact in every state.
- Most states also could see large benefits from electrification of the transportation sector and from promoting the use of electric vehicles for both public and private transportation.
- Other advanced energy categories included promoting renewable solar, wind, and other low- or zero-carbon fuel sources; electrification of residential, commercial, and industrial buildings; increasing the use of energy storage technologies that reduce energy waste; and modernizing electric grids and high-voltage transmission infrastructure.
We ran the state-specific advanced energy investment profiles through IMPLAN, an industry-standard macroeconomic input-output model, to gauge the potential impact of advanced energy investment on a given state’s Gross State Product (GSP) and employment.
At the same time, investing stimulus dollars in transformative energy programs can move states significantly further down the road to meeting ambitious decarbonization goals. ■
“These investments will provide an immediate jumpstart to our economy and create good-paying jobs across the country while also accelerating the transition to a clean energy future.”
–Leah Rubin Shen, Director at AEE
Funding for Analysis Group’s work was provided by Advanced Energy Economy (AEE), a national association of businesses committed to promoting secure, clean, and affordable energy. For the Texas, Michigan, and Minnesota reports, local organizations with similar goals were also involved.
Economic Impact of Stimulus Investment in Advanced Energy (15 reports), Paul Hibbard and Pavel Darling, AnalysisGroup.com