Report shows wider electric vehicle adoption benefits disadvantaged CA communities
Next 10, an economic and environmental think tank based in San Francisco, worked with Berkeley Economic Advising and Research to publish a report Tuesday highlighting the expanded economic benefits of electric vehicles, or EVs, for disadvantaged communities in California.
David Roland-Holst, co-author of the report and campus adjunct professor of agricultural and resource economics, said the report details how as consumer demand shifts away from gasoline toward other services, disadvantaged and low-income communities benefit from the additional service jobs created.
“In California, 70% of consumer spending goes toward services — much more job intensive. Service demand creates jobs across the entire economy and works significantly for lower-wage households because that’s where most of the unskilled labor categories are,” Roland-Holst said. “California spent $60 billion a year on gasoline and if that money could be redirected to more labor-intensive in-state services it would be a huge stimulus in the state economy.”
Such services, according to Roland-Holst, could be anything from making espresso drinks to medical services to financial services.
The report explains how a conservative scenario predicts increased EV adoption in California could create about 394,000 jobs by 2030, while a model accounting for steeper declining costs and increasing vehicle model choices shows it could create more than half a million new jobs.
The study’s main argument focuses on economic justice, stating that innovation in vehicle technologies should be more equitable, seeing as low-income households are more likely to experience higher air pollution intensity, according to Roland-Holst.
“I’d like to see the state double down on electric vehicle incentives and especially make it accessible to lower-income houses. Right now, lower-income houses can’t afford these innovative vehicle technologies,” Roland-Holst said. “The U.S. has basically taken a top-down approach to electric vehicles and Teslas are an example of this — these cars are luxury goods.”
Annie Yi Chen, campus senior and co-author of the report, said there is a concern that wider EV usage raises the issue of battery disposal, but also mentioned EV adoption is moving in the right direction for the environment.
F. Noel Perry, founder of Next 10, said EVs rely on clean energy sources as opposed to gasoline. Perry added that transportation emissions in California account for about 41% of total emissions, and as vehicle miles traveled continue to rise, more people are opting for less fuel-efficient vehicles.
“The year 2030 is very important because over the next 10 years we hope there will be more EV adoption that will end up reducing emissions,” Perry said.
Roland-Holst said the majority of California’s Gross State Product, or GSP, is consumer demand, which drives the economy.
The report predicts, depending on the scenario, light-duty vehicle electrification will increase California’s GSP by between $82 billion to $142 billion.
“It’s not about these seemingly abstract notions about saving the planet,” Roland-Holst said. “This report is something much more tangible: how can we benefit Californians right now by doing the right things with electrification of vehicles.”
Olivia Buccieri is the lead business and economy reporter. Contact her at obuccieri@dailycal.org and follow her on Twitter at @obuccieri_dc.