Analysis shows $10 billion in stimulus investment would add $60 billion to Nevada’s gross state product, a six-fold return on investment; increase tax revenues; create jobs; and deliver annual savings to consumers
CARSON CITY, October 15, 2020 – Today, national business group Advanced Energy Economy (AEE) released results of a report that quantified significant economic benefits associated with investments in advanced clean energy deployment for the state of Nevada. The report, which was produced by international economics consultant Analysis Group for AEE, used an industry-standard modeling tool to estimate the impact of investing potential federal stimulus funds in advanced energy technologies, products, and services to boost economic activity in the wake of the COVID-19 slowdown.
The full report “Economic Impact of Stimulus Investment in Advanced Energy: An economic assessment of applying stimulus funds to advanced energy technologies, products, and services in Nevada,” is available here.
“As Nevadans work toward recovering from the devastating economic impacts of the coronavirus health crisis, this analysis shows investment in advanced energy delivers a six-fold return to our state’s economy, creating much-needed in-state jobs and tax revenue for state and local governments,” said Sarah Steinberg, policy principal at Advanced Energy Economy. “Such public stimulus also attracts billions of dollars in private investment and saves consumers — commercial and retail alike — billions of dollars annually.”
“By investing in energy efficiency and renewable energy, while accelerating the shift to zero-emissions transportation, we can generate significant economic activity while also helping Nevada achieve its ambitious energy and emissions reduction goals,” added Steinberg.
Specifically, the report shows that a hypothetical investment of $10 billion of public investment dollars in Nevada, allocated across a range of advanced energy technologies, would produce the following economic benefits:
- Adding a total of $60 billion to Nevada’s economy (Gross State Product), a six-fold return on the investment.
- Attracting $27 billion in complementary private investment, a contributor to GSP impact above.
- Creating 400,000 new jobs, measured in job-years, resulting in a mix of short-term construction or installation employment along with ongoing positions;
- Increasing tax revenues by $3.5 billion to local and state governments; and,
- Saving consumers $2.8 billion in energy costs annually.
The report found that energy efficiency investments delivered the greatest overall boost to the Nevada economy, totaling $38 billion in Gross State Product, and the most jobs (210,000 job-years). The next biggest impact came from renewable energy generation (both solar and wind), totaling $7 billion, and 48,000 jobs. Investments in electric transportation – electric vehicles and associated charging infrastructure – would contribute $6 billion in economic activity and create 48,000 job-years of employment. Energy storage investments would generate $3 billion and 35,000 job-years.
In terms of consumer savings, energy efficiency investments produced the greatest benefits. For residential customers, energy efficiency would save $1.8 billion per year and residential rooftop solar $140 million annually. Commercial and industrial customers would save $660 million per year from energy efficiency upgrades and onsite solar. Switching from gasoline-powered vehicles to electric would save drivers $190 million in imported fuel costs.
The report notes that a greater or lesser level of stimulus investment would result in greater or lesser economic impact, but the modeling shows that advanced energy stimulus investments can generate important and positive economic benefits in the state of Nevada, adding substantial value to the Nevada economy, creating hundreds of thousands of jobs, and sending additional revenue to state and local governments.
“Nevada is uniquely poised to leverage the economic benefits of advanced energy technologies thanks to the strong foundation established by the Sisolak Administration and the Legislature's consistent leadership,” said Steinberg. “With 34,000 employed* in this sector and an established in-state supply chain supported by a broad range of companies, advanced energy will be a reliable economic driver in Nevada for years to come, while making good on our commitment to deliver secure, clean, affordable energy for all.”
*AEE Advanced Energy Employment Fact Sheet, Dec. 2019 is here.
About Advanced Energy Economy
Advanced Energy Economy (AEE) is a national association of businesses that are making the energy we use secure, clean, and affordable. Advanced energy encompasses a broad range of products and services that constitute the best available technologies for meeting energy needs today and tomorrow. AEE’s mission is to transform public policy to enable rapid growth of advanced energy businesses. Engaged at the federal level, in Nevada and more than a dozen states around the country, AEE represents more than 100 companies in the $238 billion U.S. advanced energy industry, which employs 3.6 million U.S. workers. Learn more at www.aee.net, track the latest news @AEEnet.