From Reason Online
Opponents of the bill worried that deep, rapid cuts in emissions would hurt the state's economy. But never fear: In 2008, the California Air Resources Board issued a study reassuring Californians that they can make money hand over fist selling each other wind turbines and electric cars. Implementation of the cap "creates more jobs and saves individual households more money than if California stood by and pursued an unacceptable course of doing nothing at all to address our unbridled reliance on fossil fuels," the study cheerfully declared. Because by 2020 the mandates will increase economic production by $27 billion, boost personal incomes by $14 billion, raise per capita incomes by $200, and produce an additional 100,000 jobs. According to the study, "the bulk of the economic benefits are the result of investments in energy efficiency that more than pay for themselves over time."
The study projects that Californians will offset higher electricity and gasoline bills by driving more fuel efficient cars, by adjusting their thermostats to 68 degrees in winter and 78 degrees in summer, and by using energy efficient appliances at home. The idea is that while electricity will cost more, Californians will do things like switching from incandescent bulbs to energy thrifty compact fluorescent bulbs to reduce their energy usage.
But are these projections accurate? The study's economic peer reviewers don't think so.
Via the Instapundit