PALO ALTO, Calif.,
Nov 13, 2007 /PRNewswire
Statistics released today in the inaugural "California Green Innovation
Index" run counter to conventional wisdom and paint a different picture of
California's energy history and future than previously reported. Despite the
State's reputation for high electricity costs, Californians, per capita, pay
lower utility bills and spend billions less of their state economy as a
whole on electricity than the rest of the country because of energy
efficiency, according to Index data. California also emits fewer GHG
emissions per capita than Germany, the United Kingdom or Japan. At the same
time, multi-billion dollar energy efficiency savings help drive the state
economy. As a fraction of a state's gross domestic product, the Texas
electricity bill is almost double the California electricity bill --
representing $25 billion in savings for California in 2005 alone. And,
contrary to popular wisdom, Californians, per capita, drive far fewer miles
per vehicle than the rest of the country, but overall vehicle sales and
total miles traveled continue to grow.
The "California Green Innovation Index" (http://www.next10.org) is an
initiative of Next 10, a nonpartisan, nonprofit organization, founded and
funded by venture capitalist F. Noel Perry. Designed to track key economic,
energy and environmental indicators, the Index provides critical data on the
impact of innovation on the state's economic and environmental health as
California moves to reduce greenhouse gas (GHG) emissions to 1990 levels as
mandated by the California Global Warming Solutions Act (AB 32). A PDF of
the Index can be found at: http://nextten.org/pressreleases/NextTen-2z.pdf.
"As a venture capitalist, I recognize the challenges presented by global
warming and the opportunities provided by AB 32. But whether we maximize
those opportunities is dependent upon how this law is implemented. We
developed the Index to gauge progress and uncovered some surprising trends,"
said Perry. "Over the past thirty years, California has been on a different
path than the rest of the nation and the world. Through innovation,
California has become a global leader in energy efficiency and the reduction
of greenhouse gas emissions, which, contrary to conventional wisdom, has
helped it grow one of the largest economies in the world."
Chief among Index findings:
-- As a result of the first wave of green innovation, which began in the
1970s, it comes as no surprise that California is more energy efficient and
emits fewer greenhouse gas emissions per capita than the United States as a
whole. However, California also emits fewer GHG emissions per capita than
Germany, the United Kingdom or Japan.
-- With the eighth largest economy in the world and one of the nation's
highest gross domestic products per capita, California's per capita GHG
emissions are less than one-half the rest of the nation and are lower than
they were 15 years ago. Among states, only Rhode Island emits fewer GHG
emissions per capita than California.
-- Green innovation, combined with other factors, allow Californians to
spend less on electricity and have more to spend on other parts of the
economy than the rest of the nation. (Chart 7)
-- The average monthly residential electricity bill in California is less
than half of the average monthly bill in Texas, representing a total savings
for Californians of nearly $25 billion in 2005. As a fraction of the state
economy, Texas' overall electricity bill is almost double California's bill.
(Charts 7 and 8)
-- California building and appliance standards alone have saved $56 billion
through 2003 and are expected to save another $23 billion by 2013.
-- California utility programs and efficiency standards have reduced the
need for 24 power plants between 1975 and 2006.
-- California has established itself as a world leader in green innovation.
California inventors account for 44 percent of total U.S. patents for solar
and 37 percent of total U.S. patents for wind technology. The state
attracted 36 percent of total venture capital investment in clean energy,
indicating our state's leadership in the innovation of new technologies.
(Chart 34)
-- Since 1990, green business establishments in the state have grown by 84
percent and employment has doubled. Growth in green establishments has been
strongest in solar energy generation. (Chart 39)
-- California has fewer vehicle miles traveled (VMT) per capita than the
rest of the country. While per capita VMT in the rest of the country has
grown consistently since 1995, in California per capita VMT has declined in
recent years, and is only slightly higher than in 1995. (Chart 21)
-- From 2000-2005, registrations of alternative fuel vehicles (not including
Flex Fuel Vehicles or FFV) increased 1800 percent. (Chart 30)
-- Per capita petroleum consumption in California has fallen consistently
since 1989 and is now below 1970 levels. (Chart 18)
The Index identifies drivers critical to California's first wave of
innovation including public policy, private investment and consumer
attitude, and presents indications that similar drivers are at work today.
Since the passage of AB 32, clean tech venture capital investments have
exploded in California, more than doubling from $364 to $884 million last
year alone, accounting for the largest share of U.S. venture capital.
To better understand consumer attitude in California, Next 10 commissioned a
Field Poll, which was released November 8th. Survey results depict a
citizenry more informed, concerned and ready to take action on global
warming than the rest of the United States. The Index contains additional
new survey results indicating an appreciation of California's role in
innovation: 85 percent of Californians agree the state can reduce greenhouse
gases that contribute to global warming and, at the same time, expand jobs
and economic prosperity. 77 percent agree that firms and government
researchers will develop new technologies to combat the problem of global
warming. 90 percent of Californians believe California can be a leader in
new technologies to improve efficiency and reduce global warming. (66
percent agree strongly.)
While many of the Index findings illustrate the opportunities innovation can
bring to the state, the Index also underscores the challenges that lie
ahead: While California has made enormous progress, the state's rate of
population growth and impacts on fuel and electricity consumption and
greenhouse gas emissions require that the next wave of innovation be larger,
faster and more powerful than the last to meet the mandate of AB 32. (Chart
44)
-- While Californians, per capita, are increasingly driving fewer miles per
vehicle than the rest of the country, overall vehicle miles traveled
continue to grow. With nearly 41 percent of California's GHG emissions
coming from the transportation sector, reducing GHG emissions per vehicle is
critical to reaching the mandate of AB 32. (Chart 21 and 20)
-- While California has registered more green technology patents than other
states, foreign inventors are registering more patents than U.S. inventors.
-- Federal green technology research and development monies to California
have declined precipitously over the last ten years, falling from $7.8
million in 1997 to $410,000 in 2006. (Chart 32)
"The Index data makes it clear that California will need to move farther
faster if it is to successfully meet the targets set by AB 32," said Doug
Henton of Collaborative Economics, a Silicon Valley-based firm that prepared
the Index for Next 10, "But the data also indicates we may be at an
inflection point between the first wave and a new wave of green innovation."
California Air Resources Board (CARB) chair Mary Nichols commented, "I am
very encouraged that the California Green Innovation Index will be a
powerful tool to track the valuable lessons learned as California makes
history meeting the mandate of AB 32."
The Next 10 "California Green Innovation Index" identifies and tracks over
40 data indicators drawn from state and federal agency sources, academic
institutions and proprietary databases. In coming years, the Index plans to
develop indices and track data on regional performance, as well as the
impacts of policy. The Index was produced in partnership with Collaborative
Economics, a Mountain View, California-based research and consulting
organization that works with senior executives from business, foundations,
government, education and community sectors to identify economic,
environmental and social trends and promote regional innovation. For over a
decade, Collaborative Economics has prepared the annual Index of Silicon
Valley for Joint Venture: Silicon Valley Network.
Next 10 is an independent, nonpartisan organization that educates, engages
and empowers Californians to improve the state's future. Next 10 is focused
on innovation and the intersection between the economy, the environment and
quality of life issues for all Californians. Next 10 employs research from
leading experts on complex state issues and creates a portfolio of
nonpartisan educational materials to foster a deeper understanding of the
critical issues affecting our state. On November 14, Next 10 is launching an
updated website, http://www.next10.org. This dynamic new site houses an
online digest of the core findings contained in the California Green
Innovation Index, and includes video clips and animated graphics.
SOURCE Next 10
News Provided By
