Report: Energy stimulus would spur jobs, consumer savings, add trillions to GDP
Advanced Energy Economy released a report this week quantifying the benefits of proposed national stimulus infrastructure investment in the advanced energy sector.
An investment of $600 billion would add $3.5 trillion to the national economy, create more than 28 million new jobs (in job years), generate over $600 billion in annual tax revenue at all levels of government, and save consumers over $74 billion annually on energy costs.
“As leaders debate critical elements of a national infrastructure bill, this analysis shows that investing in advanced energy infrastructure delivers significant benefits to the American people,” said Leah Rubin Shen, director at AEE. “Investment in a broad range of advanced energy technologies returns a nearly six-fold impact to the U.S. economy. These investments are a win-win for the country — creating millions of jobs, delivering significant savings to consumers, and improving our nation’s competitiveness.”
Analysis was based on the proposed Biden administration’s American Jobs Plan call for a $600 billion stimulus investment in advanced energy technology. However, the economic benefit is scalable — the bigger the investment, the bigger the benefit.
The report, “Economic Impact of Stimulus Investment in Advanced Energy for America,” produced for AEE by Analysis Group, finds that such stimulus would:
- Add $3.5 trillion to U.S. GDP — a six-fold return on the initial investment.
- Create over 28 million new jobs (ranging from short-term construction/installation to longer-term positions, measured in job years) in the advanced energy industry.
- Generate $631 billion in additional tax revenue for federal, state, and local governments.
- Save consumers over $74 billion annually on their energy costs.
- Encourage private investment, with each dollar of public investment generating $2.50 of private investment.
“As the national conversation around infrastructure continues, this report shows that significant investments in advanced energy should be central to that discussion and fully deserve to be part of any deal,” said Rubin Shen. “The jobs, consumer savings, and overall economic development created will power our economic recovery and ensure that the U.S. remains competitive for years to come.”