Significant potential for job and revenue growth seen in Midwest sectors.
If the federal government implements new energy policies that encourage low-carbon technologies, Midwest manufacturing could gain significantly, according to a report by The Climate Group and the University of Michigan.
“American Innovation: Manufacturing Low Carbon Technologies in the Midwest” looks at the impacts on wind turbine, hybrid powertrain and advanced battery manufacturing. The study anticipates three factors – a $17 per ton price on carbon, a green economic stimulus program, and a 20 percent federal renewable electricity standard by 2020.
- Climate and energy policies would lead to additional market revenues of up to $12 billion, additional state and local tax revenues of up to $800 million and up to 100,000 new jobs from the wind turbine component, hybrid powertrain, and advanced battery manufacturing sectors in the Midwest by 2015.
- In the wind turbine component sector, climate and energy policies would create up to $7.1 billion in additional market revenues, $470 million in additional tax revenues and more than 61,800 new jobs in the Midwest by 2015.
- In the hybrid powertrain sector, climate and energy policies would lead to $3.8 billion in additional market revenues, $252 million in additional tax revenues and 30,900 new jobs in the Midwest by 2015.
- In the advanced battery sector, climate and energy policies would create up to $1.4 billion in additional market revenues, $90 million in additional tax revenues and 11,900 new jobs in the Midwest by 2015.
- Because the report looks at only three of the fifteen low-carbon technologies that the Midwest has a comparative advantage in, findings represent only part of potentially greater economic benefits associated with manufacturing low carbon technologies in the Midwest.