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Manufacturers’ Report Says Global Warming Act Hurts Business

Aired 6/28/12 on KPBS News.

A report commissioned by the California Manufacturers and Technology Association suggests that the state's sweeping law to reduce greenhouse gas emissions - known as AB32 - will cost billions and drive jobs from the state.

A report commissioned by the California Manufacturers and Technology Association suggests that the state's sweeping law to reduce greenhouse gas emissions - known as AB32 - will cost billions and drive jobs from the state.

Association president Jack Stewart said the law will make energy costs exorbitant - and scare off new industrial investment.

"Because of high costs because of things like the uncertainty that AB32 throws on the economy - if the company's going to invest here - they're looking out ten to fifteen years and when they can't see what the costs are going to be, they're going to go to a state with more stable economic future," commented Stewart.

The report points to high costs stemming from programs like the "cap and trade" where businesses will be charged for their emissions.

It estimates AB32 will cost the state a quarter of a million jobs over the next eight years. That's in contrast to a UC Berkeley report that finds the law will directly generate more than fifty-thousand green jobs by 2020.


Avatar for user 'ptsstaff'

ptsstaff | June 28, 2012 at 4:52 p.m. ― 3 years ago

CARB fuel policies will impact those that can least afford more expensive energy

The recent report by the Boston Consulting Group ( on the impact of Global Warming Initiative AB32 on the refineries and the California economy is very sobering. Seems like no one cares about what the cost will be to the refineries to meet the AB32 policies, but the impact on the 37 million citizens that will pay more for transportation fuels and energy is staggering. No one else in the country will be paying for AB32, just those citizens and businesses that reside in California.

With California contributing only 1% to the world’s greenhouse gases, it looks like CARB has bet the California economy on the small country of Brazil and their sugar cane for California refineries to produce the AB32 required low carbon fuel.

The supporters of the Global Warming Initiative AB32 want to set the standard for the world. However, Brazil has never produced enough sugar cane to meet the needs of just California, let alone what would be required by the other 49 states and other countries.

CARB’s tunnel vision focus on California’s miniscule 1% contribution to the World’s greenhouse gasses will drive up the cost of energy and transportation fuels for 37 million Californians.

These added energy costs will incentivize more businesses and citizens to depart California, driving up unemployment, further increase the State’s deficit, and severely impacting the middle and lower income people that can least afford more costs to live and work in California.

Even if all 37 million Californians were required to ride bicycles TODAY, California would have no effect on the World’s greenhouse gasses!

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Avatar for user 'Derek'

Derek | June 28, 2012 at 6:03 p.m. ― 3 years ago

Anyone who understands how a market economy works knows that negative externalities make the market less efficient. CARB is simply attempting to correct the market failure. However, a carbon tax would be a much more efficient way of achieving that goal. Making it revenue neutral by giving each American an equal share of the revenue would eliminate any burden on the poor.

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Avatar for user 'CaliforniaDefender'

CaliforniaDefender | June 28, 2012 at 9:51 p.m. ― 3 years ago


What is wrong with driving polluting business out of California and the people employed by them? I see no need to keep them around as California is struggling under the weight of such a massive population and the continual leeching of our tax dollars and resources by Washington DC make it even harder.

Furthermore, your final statement that 37 million Californians riding bicycles would have no effect on greenhouse gasses is just laughable. It is plainly clear even to a non-academic that it would, that is unless there is a dense cloud of smog surrounding you.

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Avatar for user 'Glen'

Glen | June 29, 2012 at 7:08 a.m. ― 3 years ago

The state couldn't care less about driving out business with hysterics about air pollution, rather than look for realistic solutions. They did it with the aerospace industry and the boating industry. There were more recreational boat manufacturers in Orange County in the 70s than anywhere else on earth. But thanks to California's hysterical tree huggers, they're all but gone; they've moved to other states.

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Avatar for user 'benz72'

benz72 | June 29, 2012 at 9:27 a.m. ― 3 years ago

There is nothing wrong with internalizing externalities. It should be done on as large a scale as possible though.

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Avatar for user 'JohnL'

JohnL | June 29, 2012 at 11:05 a.m. ― 3 years ago

Dirty low-wage old-technology business move out making way for potentially unlimited clean higher wage new tech business, providing many millions and millions of good jobs cleaner air,water,land,sounds like a win-win

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