Advanced Energy Economy has released an analysis showing that public stimulus investment of $274 billion in transportation electrification would deliver $1.3 trillion to the U.S. GDP.
The investment would, according to the analysis, also create 10.7 million jobs (in job years), and generate $231 billion in savings for consumers, governments and businesses, while accelerating the move to electric vehicles.
“As national leaders debate the size and scope of a federal infrastructure package, this report demonstrates that investments in electrified transportation programs would yield a five-fold return for the economy,” said Ryan Gallentine, director at AEE. “This is a smart way for our nation to invest in 21st century infrastructure, driving significant economic growth, private investment, and jobs as we accelerate the transition to electric vehicles.”
“As a company focused squarely on helping schools around the country electrify their bus fleets, our team at Highland sees the benefits of public-private partnership every day,” said Matt Stanberry, managing director at Highland Electric Transportation. “We know that a well-crafted school bus electrification incentive alone would unlock tens of billions of dollars in private investment, so it makes sense that AEE’s analysis finds that transportation electrification is an excellent investment for the federal government.”
“As this report shows, federal investment in electric transportation represents a significant opportunity for economic development and global competitive positioning in the energy transition,” Thomas Ashley, VP, policy and market development, Greenlots. “Robust federal incentives can accelerate equitable, widespread electrification, support hundreds of thousands of well-paying jobs and usher in a new era of American leadership in electrification.”
The report, “Economic Impact of Stimulus Investment in Transportation Electrification,” produced by Analysis Group for AEE, analyzes the economic impact of allocating $274 billion in federal stimulus investments in electrification of the transportation sector, an amount based on President Biden’s American Jobs Plan.
The report finds such stimulus would:
- Add $1.3 trillion to the national GDP – a nearly five-time return on public investment
- Create 10.7 million jobs, measured in job-years, including positions in vehicle and battery manufacturing
- Generate $231 billion in additional tax revenue for federal, state, and local governments
- Save consumers, governments, and businesses $19 billion annually by switching to EVs
- Attract substantial private investment, with each $1 of public investment generating $2.60 of direct private investment
“A greater or lesser level of stimulus investment would produce roughly proportional results, up or down, but the overall impact is clear. Investments in transportation electrification deliver significant economic benefits across the U.S.,” said Gallentine. “Investing in transportation electrification adds substantial value to the economy, creates millions of jobs, and sends additional tax revenue to federal, state, and local governments, while providing savings for consumers and businesses.”