Green Works!

[OAKLAND, Calif. – California’s energy-efficiency policies created nearly 1.5 million jobs from 1977 to 2007, while eliminating fewer than 25,000, according to a study to be released Monday.

The study, conducted by David Roland-Holst, an economist at the Center for Energy, Resources and Economic Sustainability at the University of California, Berkeley, found that while the state’s policies lowered employee compensation in the electric power industry by an estimated $1.6 billion over that period, it improved compensation in the state over all by $44.6 billion.

Built into that figure were increases of $1.2 billion in the light industrial sector, $11.2 billion in wholesale and retail trade, $7.3 billion in the financial and insurance sectors and $17.8 billion in the service sector.

“Consumers were able to reduce energy spending,” the study said, adding that “these savings were diverted to other demand.”

“When consumers shift one dollar of demand from electricity to groceries,” the report said, they create jobs among retailers, wholesalers, food processors and other businesses.

The study, which examined household spending, comes as state and regional initiatives on climate-change policies have been gathering momentum. At the same time, arguments have sharpened over how much it will cost the economy to cut the emission of greenhouse gases like carbon dioxide produced by burning fossil fuels, which are linked to climate change.

Roughly half the country’s electric power is generated by burning coal, the fuel that produces among the highest greenhouse-gas emissions of any in widespread use.