30 June 2011
Aggressive innovation in clean energy technologies could provide a $155 billion annual boost to the US economy, and help it meet its environmental and national security goals. But delays could be extremely costly, according to a report by the philanthropic arm of Google.
Google.org estimates that breakthroughs in clean power generation, grid storage, electric vehicle and natural gas technologies could help the US economy grow by more than $155 billion in GDP per year by 2030 when compared to 2010 business as usual (BAU) levels.
That figure rises to $244 billion if those technological innovations are paired with clean energy policies such as a clean energy standard, extension of the production and investment tax credits, a loan guarantee credit facility capped at $15 billion per year and a carbon price for the power sector of $30 per tonne.
Such technological breakthroughs will also reduce US greenhouse gas emissions by 13% relative to BAU levels, or 21% when combined with these clean energy policies, and reduce US oil consumption by more than 1.1 billion barrels a year, the report found.
By 2050, innovation in the technologies in Google.org’s model could increase annual GDP by $600 billion and reduce GHG emissions by 55%, or 63% when combined with clean energy policies, according to the report.
“Breakthroughs in clean energy technology can reduce the cost associated with implementing policies such as clean energy standards or carbon prices — growing the economy while de-carbonising our energy use,” the report says. “Policies can also amplify the economic, security, and pollution benefits of breakthroughs by creating markets, dis-incentivising the highest-emitting technologies and levelling the playing field for clean energy, leading to increased adoption.”
But delays in advancing clean energy technologies could be extremely costly for the economy and the environment, according to Google.org. A mere five-year delay could cost the economy a total of between $2.3 trillion and $3.2 trillion in unrealised GDP gains and increase emissions by 8 billion to 28 billion tonnes.
“The longer we delay achieving those breakthroughs, the greater the benefits we stand to give up,” the report says.
Google has quickly become a major financier of clean energy projects, with more than $780 million in investments in the sector.
Gloria Gonzalez
