Action on climate change could help state economy

Implementing a proposed plan to reduce greenhouse gas emissions in Michigan could create 129,000 new jobs, increase state economic output by $25 billion and significantly reduce home energy costs by 2025, according to an analysis released this week by the nonprofit Center for Climate Strategies.

The report examined the economic impact associated with carrying out a set of recommendations that were developed by the Michigan Climate Action Council — a group appointed by Governor Granholm in 2007 and tasked with developing a strategy to reduce state greenhouse gas emissions.

According to the report approximately 90 percent of Michigan’s household and business purchases of energy leave the state, so reducing expenditures on energy would leave more money in the state where it would benefit the economy.

Coal-fired power plants generate most of the electricity in Michigan and are the largest emitter of greenhouse gases, so reducing energy use is a powerful way to reduce emissions. Developing new local ways of generating power could also create new jobs.

Steven Miller, Director of the Center for Economic Analysis at Michigan State University was the lead author of the economic impact report.

In a phone interview Miller said that energy optimization — load management on the energy supplier side — is one of the cheapest ways to reduce greenhouse gas emissions.

When power companies upgrade to more efficient boilers or higher conductive lines they can dramatically reduce emissions, and though the costs of these upgrades are passed on to ratepayers, there is a high reduction of emissions for every dollar spent, he said.