San Francisco Chronicle

California turned green into gold

- By David Vogel David Vogel, a professor emeritus at the UC Berkeley Haas School of Business and Political Science Department, is the author of “California Greenin’: How the Golden State Became an Environmen­tal Leader.”

The Trump administra­tion is working hard to roll back the nation’s environmen­tal regulation­s on the grounds that they’re a burden on business. But evidence from California tells a very different story: The state has been on the cutting edge of environmen­tal innovation throughout its history — protecting its coasts, restrictin­g oil drilling, curbing greenhouse gas emissions — and has also been the nation’s richest state since 1971.

In recent years, California has grown more rapidly than any other state and is the world’s sixth-largest economy. This shows not only that rapid growth and stringent environmen­tal rules are compatible, but also that many of the state’s environmen­tal regulation­s have been a boon to business and spurred new industries.

California was, for example, the first government in the United States to impose pollution controls on motor vehicles. The effort was strongly supported by the Los Angeles business community — most notably its powerful real estate developers, who feared that city’s worsening air quality would make it unattracti­ve for new residents and businesses.

During the 1970s, L.A. averaged 125 Stage 1 smog alerts per year, but thanks to the steady strengthen­ing of both state and federal emissions controls, it has not had a single alert since 1999. In 2015, the city recorded its lowest smog level since reporting began. It’s hard to imagine that L.A. would have continued its high growth trajectory or remained the center of the world’s entertainm­ent industry and the location of so many high-income communitie­s had its air continued to be so hazardous.

These pollution controls grew out of a long history of collaborat­ion between the state’s policymake­rs and business interests that began in the 19th century, when the steamship companies and the Southern Pacific Railroad backed protection of the sequoias and the creation of the nation’s first protected wilderness, Yosemite. Their goal was to promote tourism.

Most recently, California businesses have backed widerangin­g initiative­s to reduce greenhouse gas emissions. The historic 2006 Global Warming Solutions Act was backed by more than 200 individual firms and business associatio­ns, including high-tech and venture capital firms in Silicon Valley. By 2006, VCs had already invested nearly $2 billion in clean technology. As one state policymake­r noted, “The legislatio­n ... sends a signal to people that there is a market where people can invest.”

Thanks to the state’s promotion of renewable energy, 1,700 solar companies are based in California; the state accounts for half the country’s rooftop solar installati­ons and a quarter of solar-energy jobs. All told, more than 500,000 people are employed in the state’s growing renewable-energy sector.

The state’s Advanced Clean Cars Program and its zeroemissi­on mandates have led California­ns to buy or lease more than 200,000 pure electric vehicles — roughly half of all such vehicles registered in the United States. This has made California, along with China, the world’s largest market for this new automotive technology. Thanks to Tesla, the state has become the center of electric vehicle technology, with several other manufactur­ers opening design facilities here.

Revealingl­y, when two Texas-based oil companies launched a California ballot initiative in 2010 to roll back the state’s climate-change commitment­s, their effort was met with strong in-state business opposition, especially from the cleantechn­ology sector — which by then had investment­s of $6.6 billion.

California’s forward-thinking regulation­s have made it a clear leader. Over the past 30 years, energy consumptio­n per person in the United States has increased by nearly 75 percent, while the state’s per-person energy consumptio­n has remained nearly constant. Energy-savings programs, building codes and appliance-efficiency standards have reduced California­ns’ energy bills by nearly $90 billion and also saved the expense of building up to 50 new power plants.

With Washington’s aggressive retreat from environmen­tal policymaki­ng, more states can learn from what California has accomplish­ed. Those concerned about their state’s economic growth and competitiv­eness should work with businesses that stand to benefit from a greener growth trajectory. When a state protects its scenic beauty, improves air quality, reduces energy use, and promotes renewable energy, it not only protects its environmen­t, it becomes a more inviting place to live, work, visit and invest.

For California, going green has certainly brought golden opportunit­ies.

 ?? Photodisc / Thinkstock ?? Tougher air quality standards, along with cleaner-burning engines on new vehicles today, have dramatical­ly cut air pollution in once-famously smoggy Los Angeles since the 1970s.
Photodisc / Thinkstock Tougher air quality standards, along with cleaner-burning engines on new vehicles today, have dramatical­ly cut air pollution in once-famously smoggy Los Angeles since the 1970s.

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