Macroeconomic impacts of the Florida Energy and Climate Change Action Plan

Abstract

The impacts of the Florida Energy and Climate Change Action Plan on the state's economy are analysed. The plan contains 50 policy recommendations developed through a stakeholder-driven, consensus-based process. The analysis carefully links each greenhouse gas mitigation/sequestration option to the workings of the Florida economy with the use of the Regional Economic Models, Inc. (REMI) Policy Insight model. The results indicate that most of the recommended options individually have positive impacts on the state's economy. When combined, the plan's recommendations would, on a net present value basis, increase the gross state product (GSP) by about $37.9 billion and increase employment by 148,000 full-time equivalent jobs by 2025. The Florida Renewable Portfolio Standard contributes the highest GSP gains, or nearly 50% of the total. The economic gains arise primarily from the ability of mitigation options to both lower the cost of production and increase consumer purchasing power. The results also stem from the stimulus of increased investment in plant and equipment. Sensitivity analyses of key assumptions and parameters indicate that the results are robust.