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Entries in Competitive Enterprise Institute (1)

Friday
Apr042008

California's cautionary energy tale

The Competitive Enterprise Institute held a briefing with Thomas Tantan, author of "California's Energy Policy: A Cautionary Tale for the Nation," on California’s energy programs. The topic of discussion was if California's models for energy efficiency improvements can be applied to the rest of the nation. Tantan said that though the energy use per capita in California has remained the same since 1980, overall consumption and emissions have increased. He said that today, California consumes 65 percent more electricity than it did in 1980.

Tantan said that "California’s comparatively low per-capita energy use" is not primarily due to interventions and demand-side management programs, but instead to "other factors that most other states cannot replicate."

The factors he attributes the slow growth in electricity demand are the state’s mild climate, the economic structure shift from energy-intensive manufacturing to service oriented businesses, and California’s high residential property. He said California residents tend to live in apartments and smaller homes, or have more people living in the same household, because of the high property prices. He said these factors make California unique, and cannot be applied to other states.

Tantan also said that California’s Climate Policy to reduce greenhouse gas will impose a cost on the state’s economy, while only reducing California’s gross state product by 0.5 percent.