New analysis from the American Council for an Energy-Efficiency Economy (ACEEE) reveals that energy efficiency investments could result in massive job growth while simultaneously reducing carbon dioxide emissions and saving consumers money.
Basis of the Analysis
ACEEE’s analysis is based on its earlier white paper that considered the climate and job benefits of energy efficiency investments. It looked at programs and proposals, including the Weatherization Assistance Program, Hope 4 Homes, the Multifamily Program, heat pump incentives, and building tax incentives. The new analysis reviewed a “base” package of proposals and a “big” package with larger investments.
According to ACEEE’s analysis, a base investment would result in 1.9 million added jobs, and a big one would result in 4.3 million added jobs over the lifetime of the investments and savings. Further, carbon dioxide emissions in a base proposal would be cut by 2.4 billion (base) or 4.3 billion metric tons – roughly the total U.S. emissions for six or nine months. These reductions would result in energy bills that would be $250 billion or $320 billion lower and other benefits to consumers (present value).
ACEEE’s considered the most transformational long-term market impacts of clean energy and energy efficiency investment, including deploying heat pumps and heat pump water heaters, commercializing new low-carbon industrial technologies, and building new zero-energy homes and commercial buildings.
Why it Matters
“Pumping money into the economy in job-intensive sectors such as construction creates jobs, regardless of the kind of investment,” ACEEE notes. “Energy efficiency investments do that and more. They also create long-term jobs and economic growth through energy savings that typically pay back more than the initial investment. The energy savings reduce GHG emissions and air pollution, help consumers and businesses financially, and can benefit the health and finances of overburdened households. Efficiency investments are effective as a stimulus, as the foundation for a clean economy, and as assistance for American consumers and businesses.
ACEEE’s analysis is timely, as the Senate this week passed a bill on climate and energy initiatives that will be debated as a part of a broader, bipartisan infrastructure bill.
To read ACEEE’s fact sheet on this analysis, click here.