At Google, we’re committed to using technology to solve one of the greatest challenges we face as a country: building a clean energy future. That’s why we’ve worked hard to be carbon neutral as a company, launched our renewable energy cheaper than coal initiative and have invested in several clean energy companies and projects around the world.
But what if we knew the value of innovation in clean energy technologies? How much could new technologies contribute to our economic growth, enhance our energy security or reduce greenhouse gas (GHG) emissions? Robust data can help us understand these important questions, and the role innovation in clean energy could play in addressing our future economic, security and climate challenges.
Through Google.org, our energy team set out to answer some of these questions. Using McKinsey’s Low Carbon Economics Tool (LCET), we assessed the long-term economic impacts for the U.S. assuming breakthroughs were made in several different clean energy technologies, like wind, geothermal and electric vehicles. McKinsey’s LCET is a neutral, analytic set of interlinked models that estimates the potential economic and technology implications of various policy and technology assumptions.
The analysis is based on a model and includes assumptions and conclusions that Google.org developed, so it isn’t a prediction of the future. We’ve decided to make the analysis and associated data available everywhere because we believe it could provide a new perspective on the economic value of public and private investment in energy innovation. Here are just some of the most compelling findings:
- Grow GDP by over $155 billion/year ($244 billion in our Clean Policy scenario)
- Create over 1.1 million new full-time jobs/year (1.9 million with Clean Policy)
- Reduce household energy costs by over $942/year ($995 with Clean Policy)
- Reduce U.S. oil consumption by over 1.1 billion barrels/year
- Reduce U.S. total carbon emissions by 13% in 2030 (21% with Clean Policy)
This analysis assumed that breakthroughs in clean energy happened and that policies were put in place, and then tried to understand the impact. The data here allows us to imagine a world in which the U.S. captures the potential benefits of some clean energy technologies: economic growth, job generation and a reduction in harmful emissions. We haven’t developed the roadmap, and getting there will take the right mix of policies, sustained investment in technological innovation by public and private institutions and mobilization of the private sector’s entrepreneurial energies. We hope this analysis encourages further discussion and debate on these important issues.
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