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California: a Model for a Low-Carbon Economy?

California's per capita energy consumption has not increased since 1974, despite the rest of the USA increasing its energy needs by over 50% since then. During that time, California's carbon dioxide emissions have fallen by 30% - about 1% per year. If they can do it, what is stopping the rest of us?

Economic Growth Whilst Cutting Greenhouse Gas Emissions

If California were an independent country, it would be the 6th largest economy in the world - similar to the entire economy of Spain, Italy or China. It is a highly developed state and contributes greatly to America's wealth. The USA is the world's largest polluter, contributing nearly a quarter of global greenhouse gas emissions, yet California itself has been able to reduce its emissions by 30% during the last 3 decades. It is often said that economic growth would be stunted during a period where greenhouse gas emissions are cut. The example of California suggests otherwise.

California has been able to keep utility companies happy, whilst simultaneously cutting energy use. The average Californian uses 7000 units of electricity every year; the average American uses over 12,000. They have achieved this through a mixture of higher electricity prices, energy efficiency measures, laws and regulations, whilst maintaining economic growth. Most impressively, they have been able to break the link between electricity company profits and energy consumption. And, they are not stopping there. The next step is promotion of solar energy, cutting vehicle pollution and putting caps on greenhouse gas emissions.

The Price of Energy

The main tool they have used to reduce electricity consumption is price. Californians pay roughly twice the national average per unit of electricity. This means that they have to use less to keep their bills down.

Speaking to the Washington Post, Chris Cooper (executive director of the Network for New Energy Choices) said, "If the history of energy consumption in the U.S. has taught us anything, it is that cost drives conservation. What's dirt cheap tends to get treated like dirt."

An Example for the Rest of the World?

State Governor Arnold Schwarzenegger has recently opened a 'hydrogen highway', signed a bill to reduce vehicle emissions to 1990 levels by 2020 (a 25% cut on present levels) and has suggested that the incandescent light bulb be banned throughout the sate. Despite being a Republican, his actions suggest that his environmental credentials outreach those of his Democrat opponents, who are traditionally more environmentally conscious.

It is noteworthy that California's road to a lower-carbon economy began in the energy crisis of the 1970s, long before climate change and global warming were on the political horizon. It is estimated that the average Californian would have to pay $800 per year more in energy bills today had it not been for the measures taken since then. It adds weight to the Stern Report on Climate Change that suggests that the cost of action is much less than the cost of inaction.

California's gravitation towards restrictions on energy consumption and an embracing of energy efficiency measures was born out of economic necessity, not out of a desire to clean up the air. Economic growth has been strong during the period and there are few suggestions as to why similar measures could not be taken throughout the rest of the United States, and the rest of the World. If the economic and environmental reasons stack up, it would appear that there is only one remaining barrier to a low carbon economy: the will of the voters.