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February 20,
2002
Raising Fuel
Economy Standards Could Create 182,700 Jobs in Construction,
Automobile, Service, Retail, and Other
Industries
For more than three
decades automakers have claimed that installing safety, fuel economy
and pollution improvements in their products would be a "business
catastrophe." Not only has history proved them wrong, but a new
economic analysis released today shows that increasing fuel economy
standards to 40 miles per gallon by 2012 would create a net gain of
over 182,000 jobs throughout the economy by 2015 -- with more than
41,000 new jobs created in the motor vehicles industry
alone. "Putting technology to work means
jobs, whether it's in the computer industry or the auto industry,"
said David Friedman, author of the new study and Senior Analyst with
the Union of Concerned Scientists. "Building safe SUVs, better cars,
and powerful trucks that go farther on a gallon of gas will have a
positive ripple effect throughout the economy."
Moving to a 40 mpg average
fuel economy standard will provide consumers a net savings of more
than $29 billion by 2015 because savings at the pump far outweigh
any added vehicle costs. The money saved would be spent throughout
the economy, generating 73,900 new jobs in the service industry;
31,900 jobs in the finance, insurance, and real-estate industries;
29,900 jobs in the manufacturing industry; and 22,500 jobs in the
retail trade industry. The automotive industry and their suppliers
will see 41,100 additional jobs from consumer re-spending and
investments in producing better cars and trucks. Thousands of other
jobs would be created in agriculture, construction, transportation,
utilities, and government. Oil and associated industries would see
their job forecasts drop by 48,000 jobs, though these jobs would be
shifted to other sectors of the economy, yielding a net increase of
182,700 new jobs.
"Fuel economy will be an
engine for economic growth," said Friedman. "It's time for the auto
industry to stop crying wolf."
The Union of Concerned
Scientists used a macroeconomic model that includes
industry-specific data derived from a government designed analysis
tool to analyze 528 different industrial sectors and evaluate the
potential job impacts. Overall, states that use more gasoline and
that have more industry will gain the most jobs. California will add
23,600 jobs, Michigan 11,500 jobs, New York 10,100 jobs, Florida
9,700 jobs, and Ohio 9,200 jobs. |
Press
Release
