California Electric Vehicle Adoption Likely to raise GSP by $140 Billion over 10 years to create half a million jobs

Mark Wood

California’s light-duty electrification could be an important stimulus for economic expansion in the next 10 years. This is contrary to a new analysis of the effect of autonomous cars (EV), which complies with its climate goals, on California’s economy.

Berkeley Economic Advising and Analysis has developed the Economic Review for More Inclusive Vehicle Electrification in California and assesses the economic implications of the projected boost in the use of the powered vehicles with a long-term economic projection–and concentrate on the legislative milestone years 2030 and 2050. In turn, EV adoption could generate significant financial advantages by increasing overall economic growth, minimizing hazardous pollution, and enhancing health impacts even under the comparative conservatism of the simple scenario that does not raise EV costs over the next 10 years.

Public spending is the government economy’s number one engine. If people stop investing the capital on the pump, the rest of the dollars will be spent in goods and services that would otherwise have been used by non-state oil firms-creating jobs, “said Mr. David Roland-Holst, BEAR’s Managing Director and Professor of Economics at UC Berkeley and author of the study.

The research findings include: the performance of the 2030 GHG mitigation objectives for California, based on the increased adoption of EVs in this report, will build a generally conservative world with more than 390,000 new jobs— and more than half a million new jobs within the scenarios that compensate for steeper decreasing prices and growing product choices.

By 2030, based on the scenario evaluated, Gross Government Product would range from $82 billion to $142 billion.

Household income (inflation-adjusted income), which ranges from $311 trillion to $357 trillion by 2030, would rise significantly.

The study states that 14,776 workers in California are already affiliated with the building of energy-efficient automobiles — and therefore, additional indirect job opportunities could be created by rising demand for charging equipment and utilities. The development and economic advantages expected by the report were attributed only to prevented fuel costs.

While alternative fuel car adoption has so far focused on higher-income sections and areas, the country’s incentive initiatives have been recently modified to focus on additional growth in historically deprived areas. Vulnerable populations will now see more significant economic and health improvements from EV implementation.

This research influenced the outcomes of an “Equity” situation, which suggests an EV purchase would be equivalent between income brackets by 2030, to evaluate the potential impacts of a fairer allocation of EV use in the state. That implies the same total installation of EVs but higher uptake in lower-income brackets.