A University of Michigan study released today finds the state could add $380 million a year in revenue and 3,400 full-time jobs to the economy by 2025 while reducing greenhouse gas emissions.
The study, "Michigan at a Climate Crossroads: Strategies for Guiding the State in a Carbon-Constrained World," evaluates emissions-reduction options and their likely effects on the state economy. Based on computer-modeling studies, the report concludes that Michigan can reduce carbon dioxide emissions and other greenhouse gases 12 percent by 2025 while fueling job creation and economic growth.
"Our research demonstrates that the state can achieve environmental improvements at the same time that it creates positive economic outcomes," said project Director Gregory KEOLEIAN, co-director of the University of Michigan's Center for Sustainable Systems. "Policies such a Renewable Portfolio Standard could better position the state to thrive economically while addressing future energy challenges and anticipated carbon regulations."
Enacted separately, the examined policies could result in the following economic impacts by 2025:
- Renewable portfolio standard. Requiring state-regulated utilities to provide 20 percent of their power from renewable sources could add $64.6 million annually to the state's economy and create 881 jobs.
- Renewable motor fuel standard. Mandating that renewable sources such as ethanol supply 25 percent of the state's motor vehicle fuel could create 1,700 jobs and contribute $283 million annually to the state's economy.
- Building codes. Requiring higher insulation values for ceiling, walls, floors, windows and basements in all new single-family homes built in the state could create 644 jobs and contribute $54 million annually.
- Appliance standards. Setting efficiency standards for 15 common industrial and household appliances could create 437 jobs and contribute $38.3 million annually.
- Combined heat and power. Producing at least 180 megawatts using combined heat-and-power systems as replacement electricity and steam sources for industry would reduce greenhouse emissions. But 81 jobs and $13.6 million annually could be lost due to state government subsidies.
- Carbon sequestration. Planting conifers on 10 percent of the state's marginal agricultural lands could lead to a loss of 212 jobs and cost the state $46.7 million annually due to state government subsidies.
Full Report - 11MB PDF
Executive Summary - 1MB PDF
Thursday, May 24, 2007
