Publications

California’s Manufacturing and Benefits of Energy Efficiency

September 3, 2015

"Energy policies that promote efficiency and reduce energy bills are contributing to the state's manufacturing success," said F. Noel Perry, businessman and founder of the nonprofit nonpartisan Next 10. "Even with the most aggressive carbon pollution reduction policies in the nation, California remains the top state for manufacturing."

Next 10’s new report analyzes electricity productivity – how much GDP manufacturers produce for every dollar spent on electricity – and finds that California generates $59 in GDP for every dollar spent on electricity, compared to $38 for the rest of the nation, leading every other state except Connecticut.

At the same time California continues to generate the most manufacturing output, jobs and exports of any state in the United States. Energy policies designed to promote efficiency and reduce energy bills are contributing to the state’s manufacturing success.

The report also analyzes energy costs, highlighting that costs are lower in states that embrace energy efficiency, like California. In fact, while average electricity rates in California are higher than the national average, Californians on average spend less on total electricity bills than the rest of the nation, due the state’s strong track record in energy efficiency. In 2013, California had the third lowest electricity bill in the nation as a percent of the total state economy.