Cleaner Cars and Job Creation

Client:

Synapse analyzed the macroeconomic impacts of federal fuel economy standards and state zero-emission vehicle standards on the U.S. economy. Our team compared the impacts of vehicle standards set for 2017-2025 to the impacts of keeping standards at 2016 levels. Our analysis indicated that federal and state vehicle standards will result in positive employment impacts and GDP growth in both the short term and long term. Synapse released Cleaner Cars and Job Creation, a report prepared for Union of Concerned Scientists, Natural Resources Defense Council, and American Council for an Energy-Efficient Economy, in March 2018.

In a follow-up report entitled Giving Back Half the Gains, we extended our Cleaner Cars Analysis to explore the macroeconomic impacts of the proposed rollback of the standards (henceforth called the flat-lined standards), relative to the same 2016-technology baseline. We then compared the employment and GDP impacts of the proposed flat-lined standards with the employment and GDP impacts of the existing clean vehicle standards. We found that the proposed flat-lined standards will generate 60,000 fewer job-years in 2025 and over 120,000 fewer job-years in 2035 than the existing clean vehicle standards. Furthermore, the proposed flat-lined standards will reduce GDP by $8 billion in both 2025 and 2035 when compared to the existing clean vehicle standards. We concluded that the proposed flat-lined standards are expected to reduce the positive impacts on the U.S. economy that would be generated under the existing clean vehicle standards compared to the 2016-technology baseline.

Status: 
Project completed September 2018