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How Do Ambitious Climate Pledges Impact Economic Growth? For Insight, Compare Texas And California.

Compared to other places, like Texas – known for its oil and gas production – California’s economy is performing better on most measures, showing that it is entirely possible to pair steep emission reductions with vibrant growth.

California has established some of the world’s most ambitious carbon emission reduction targets, and is achieving them faster and at lower cost than expected.  The state hit its 2020 target four years early, while its economy grew much faster any other state and the U.S. economy as a whole – California’s economy climbed from 10th largest in the world in 2012 to 5th largest today.

This economic growth stands in stark contrast to some of the inflammatory predictions lobbed at the state’s policymakers when the state was considering Assembly Bill 32 (AB 32), California’s first statewide commitment to reducing emissions.  Adopted on a bipartisan basis with leadership from Republican Governor Arnold Schwarzenegger, the law requires emissions to fall back to 1990 levels by 2020.

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