Economic Impact of Stimulus Investment in Advanced Energy for America
White Paper, 2021
In an independent report, Principal Paul Hibbard and Managing Principal Pavel Darling reviewed the potential economic impacts of applying stimulus funds to develop advanced energy technologies, products, and services in the US. Using estimated spending levels from President Biden’s American Jobs Plan, the team found that $591 billion in stimulus spending could add $3.5 trillion and 28 million new jobs to the economy. As the US government debates an infrastructure spending plan, these findings have become particularly relevant. Funding for the report was provided by Advanced Energy Economy, a national association of businesses committed to promoting secure, clean, and affordable energy.
The report analyzed how stimulus spending on programs and infrastructure in advanced energy technologies could generate economic activity while also addressing the nation’s energy and environmental policies. The findings covered a range of advanced energy technologies and services, including energy efficiency, renewable energy (solar and wind), electrification of buildings, electrification of transportation (electric vehicles and charging infrastructure), energy storage, grid modernization (smart meters and microgrids), high-voltage transmission, and job training. The report’s authors included the level of private spending and investment that would be stimulated, the number of jobs created, and the amount of consumer savings on energy costs across the US.
The study results pointed to “important and positive economic benefits” associated with advanced energy technology investments. Analysis Group’s other reports with AEE have included the impact of state investment in advanced energy technologies, and the impact of nationwide investment in transportation electrification.