Impact of the IECA Sustainable Manufacturing & Growth Initiative
Keybridge analysis finds that the IECA Sustainable Manufacturing & Growth Initiative likely to boost economic growth while reducing GHG emissions.
In July 2010, Keybridge Research released the results of its modeling analysis of a policy package developed by Industrial Energy Consumers of America (IECA), “Economic Impact of the Industrial Energy Consumers of America’s Sustainable Manufacturing & Growth Initiative”. The modeling analysis was conducted in collaboration with the University of Maryland Inforum Modeling Project using their Long-term Inter-industry Forecasting Tool (LIFT) – a fully articulated, dynamic general equilibrium model of the U.S. economy.
The study quantifies the potential impact that the IECA policy package, if adopted, would have on the U.S. economy during the next two decades. In short, the modeling results indicate that the IECA policy recommendations are likely to achieve the stated objectives of improving economic growth, creating jobs, enhancing competitiveness, and reducing GHG emissions. Specifically, the study finds that the IECA policy package would:
• Increase real GDP by $77 billion in 2020.
• Increase cumulative employment by 9.4 million job-years in 2010-2030.
• Increase cumulative private investment by more than $1 trillion in 2010-2030.
• Increase household income by an average of $788 in 2020.
• Increase cumulative net exports by $392 billion in 2010-2030.
• Reduce energy-related GHG emissions by 13% in 2020.
Furthermore, it is estimated that the net fiscal cost associated with the IECA policy recommendations will be less than 0.1% of discretionary government spending between 2011-2030. Indeed, it is estimated that the policies will result in a cumulative increase in real GDP growth that is approximately 20 times greater than the cumulative net fiscal cost — providing U.S. taxpayers with significant “bang for the buck”.