Berkeley Economic Advising and Research have released a new report which explores the economic impact of electric vehicles (EVs) in the US state of California over the next decade.
According to the study Clean Transportation: An Economic Assessment of More Inclusive Vehicle Electrification in California, the adoption of EVs could increase California’s Gross Domestic Product by $140 billion as well as create 500,000 new jobs by 2030.
Key study findings include:
- The economic benefits of EVs could increase by up to seven to eight times over those in 2030.
- Employment and income benefits are proportionately higher among Disadvantaged Communities (DAC) even though they represent only 25% of the state’s population. This is because the dollars spent from fuel savings will go primarily to goods and services industries—sectors that disproportionately employ DAC workers.
- By 2050, the Innovation scenario—which assumes greater cost savings through improved technology costs—would create 1.182 million additional jobs across the state, with more than 36% representing DAC households.
- Air pollution reductions from large-scale electric vehicle adoption also benefit DAC households more than higher-income groups. The economic value of health benefits from the reduction in pollution would amount to $2 billion by 2030—including $800 million from avoided mortality and $1.2 billion from averted medical costs.
F. Noel Perry, the founder of think tank Next 10 which commissioned the report, said: “This data shows that an increase in electric vehicles could pay dividends to Californians across the board—increasing real income and gross state product by billions of dollars by 2030.
“Transitioning to electric vehicles is not just an investment in mitigating climate risk. It’s an investment in the economy.”
David Roland-Holst, a lead author of the report, adds: “Consumer spending is the number one driver of the state economy. When people stop spending money at the pump, they will invest most of those dollars that otherwise would have gone to out-of-state oil companies on in-state goods and services – creating jobs.”
Click here for more information about the report.