A new economic analysis finds a targeted $25 billion stimulus in Ohio's advanced energy sector would create nearly 1.7 million jobs for Ohioans and add $260 billion to the state economy—a 10-fold return on investment.
COLUMBUS, July 21, 2021 – Today, national business association Advanced Energy Economy (AEE) released a report quantifying the benefits of advanced energy investment for Ohio. The report found that investing $25 billion from potential federal stimulus in advanced energy technologies* would create 1.7 million new jobs for Ohioans (measured in job-years), save Ohio consumers $13 billion annually, generate $14 billion in annual tax revenue, and add $264 billion to GSP (gross state product).
“Federal investment in advanced energy could reset Ohio’s energy pathway by spurring new investments in energy efficiency, renewable energy, electric vehicles, and energy storage. These investments would benefit families and businesses, as well as the state’s economy overall,” said J.R. Tolbert, a managing director at Advanced Energy Economy. “Targeted stimulus applied to advanced energy has the potential to produce a 10-fold return on investment, while creating good paying local jobs.”
The report, prepared for AEE by Analysis Group, finds that a hypothetical $25 billion, calculated as Ohio’s share of a potential $2 trillion federal stimulus package, invested in a range of advanced energy technologies would:
- Add $264 billion to the state economy (GSP);
- Create 1.7 million jobs (measured in job-years) for Ohioans, in a mix of short-term construction and other ongoing positions;
- Generate $14 billion in annual tax revenue for state and local governments, and
- Save Ohioans $13 billion in annual energy costs
“The state’s advanced energy workforce is already more than 100,000 workers strong, even in the absence of significant support from state policy,” said Tolbert. “An infusion of government funds would spur significant private investment, helping to grow the state’s emerging advanced energy industry.”
The report demonstrates investments in energy efficiency would increase the state economy by over $188 billion while electric vehicles would add an additional $22 billion. These economic impacts represent both the direct and indirect effects of stimulus for Ohio. The report also details economic benefits from renewable energy, building electrification, energy storage, high-voltage transmission, and grid modernization.
The report additionally specifies that directing stimulus dollars directly toward advanced energy programs and infrastructure will help Ohio reboot its economy post-pandemic. Funds would be used for energy efficiency programs, renewable electric resources like solar and wind, electrification of buildings and transportation, energy storage, and more.
*The advanced energy technologies and supporting investments considered for the analysis include energy efficiency, renewable electric generation, building and transportation electrification, energy storage, grid modernization, transmission, and other zero-carbon fuel sources.