Applying Stimulus Funds to US Transportation Electrification Could Add $1.3 Trillion to GDP and Create 10.7 Million Jobs, According to Analysis Group Team
July 6, 2021
In an independent report, Principal Paul Hibbard and Vice President Pavel Darling reviewed the potential economic impacts of applying stimulus funds to electrification of the US transportation sector. Using estimated spending levels from President Biden’s American Jobs Plan, the team found that $274 billion in stimulus spending could add $1.3 trillion to the national Gross Domestic Product, $231 billion in additional tax revenue, and 10.7 million new jobs. Funding for the report was provided by Advanced Energy Economy (AEE), a national association of businesses committed to promoting secure, clean, and affordable energy.
The report analyzed how stimulus spending on transportation electrification could generate economic activity while also addressing the nation’s energy and environmental policies. The findings covered a range of electrification applications, including electric vehicle purchases, charging infrastructure, manufacturing and supply chain, workforce training, and research and development. The report’s authors included the level of private spending and investment that would be stimulated, the number of jobs created, and the amount of consumer savings across the US.
The results of this report strongly support including investments in the electrification of the transportation sector in federal stimulus spending. With AEE, Analysis Group has also reported on the national and state-by-state economic impact of stimulus spending on broader categories of advanced energy technologies.