California’s Manufacturing and Benefits of Energy Efficiency
New report finds California manufacturers produce more gross domestic product (GDP) for every dollar spent on electricity than manufacturers in any other state except Connecticut. California's manufacturing GDP also grew faster than the U.S. as a whole—with the state realizing a 15 percent increase over the last ten years compared to a five percent increase, on average, for the rest of the U.S over the same time period.
California's Manufacturing and Benefits of Energy Efficiency 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. 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.
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- From 2002 to 2012—a period when California passed and implemented pioneering climate and clean energy legislation—California's average manufacturing electricity purchases fell from 1.3 percent to 0.9 percent of total operating costs. That was a larger improvement than in the rest of the country.
- Growth in manufacturing sector GDP in California has far outpaced the rest of the nation, with the state realizing a 15 percent increase over the last ten years.
- That is compared to a five percent increase, on average, for the rest of the U.S.
- Since the state's manufacturing recession hit bottom in 2011, output rose faster in California than in the rest of the U.S.
- In 2013, California had the third-lowest electricity bill in the nation as a percent of the total state economy.
- Additionally, California's residential, industrial, and commercial average monthly bills stayed relatively stable between 2003 and 2013.
- Other large states experienced large jumps in average monthly bills over the same period, such as New York and Florida in the industrial sector (+78% and +35%, respectively) and Texas in the commercial sector (+25%).