Economic Benefits and Feasibility of Strategies to Reduce Petroleum Consumption in California


2006
This report analyzes the economic benefits and the feasibility of implementing Proposition 87, California’s Clean Alternative Energy Act (CAEA), which will create a modest extraction fee on oil produced in California and use the proceeds (estimated at $4 billion over one decade) as research and production incentives for alternative energy, alternative vehicles, energy efficient technologies, and education and training. Based on our analysis, the CAEA will achieve the expected savings of 4 billion gallons of petroleum in 2017, and total savings of 10 billion gallons over ten years between 2007 and 2017. In achieving these savings, the CAEA will reduce greenhouse gas emissions and local air pollution while stimulating the California economy.