Stimulating Efficiency

Photo Source: Raoul Pop

The U.S. Economic Recovery Bill mandates that $82.2 billion will go to green initiatives that make our basic infrastructure more efficient.  Opponents of the bill labeled these green programs as agenda-driven “pork” and argued that green investments will not stimulate the economy.   Let’s focus on one of the initiatives outlined in the bill- improving the electric grid.

The Rocky Mountain Institute has released an interactive map showing how the electric efficiency varies from state to state.  To achieve a high ranking a state must produce a high amount of gross domestic product for the amount of electricity consumed. California, Colorado, New York, Alaska and Delaware lead the way.  What’s most interesting about the map is not where a state ranks, but the gap of energy efficiency between the well and poor performing states.  Here is how the investment of closing this performance gap through efficiency programs can stimulate the economy and help save our planet.

If every state achieved the average level of energy efficiency of the top ten states, we would save 30 percent on electricity consumption, or 1.2 million gigawatt hours.  This would translate into a savings of $100 billion on electricity bills, cutting the equivalent of 60 percent of coal fired plants, or avoiding 779 million metric tons of carbon dioxide.  This would save the planet and free $100 billion allocated to electric bills for other goods and services.  Now that’s stimulation of our economy through energy efficiency.