The $369 billion Inflation Reduction Act is the largest, single US government investment in energy. But it is “barely a downpayment” on achieving climate goals, according to international energy and resource economist John “Skip” Laitner.
What do we actually need to invest? About $900 billion per year, or $24 trillion between now and 2050, says Laitner, who spoke about the economic imperative for greater energy productivity in a March 27 livestream forum in the Energy Changemakers Community.
At the same time, we’re seeing a slow erosion of gross domestic product (GDP), which will mean less — not more — in government investment even as the US population grows by another 36 million people, Laitner says.
The good news is that the US achieved a record level of energy productivity last year — $239 of gross domestic product for every million British thermal units (Btus) of energy used.
But don’t get too comfortable. We still have a long way to go. US energy productivity remains well below the world average.
“In fact, countries like Switzerland and Luxembourg have twice the rate of energy productivity,” Laitner says.
He advocates for policies, programs, and investments to move the US economy from using 106 quads of “dirty energy” to 82 quads of clean energy by 2050.
“I’m emphasizing this because our economy, when we step back, is slowly eroding out from under us compared to the 1950s and ‘60s for different reasons, but especially because of the way we use energy and the waste we create,” he says
Community members can view the video of Laitner’s full presentation. Stay for the Q&A at the end, where we discuss how community solar helps improve energy productivity and the need to better quantify the value of distributed energy resources.
Join us for the next Energy Changemakers Livestream, Friday, April 26, 12:15-1:15 pm EST, when Ben Parvey, CEO of BlueSky Power will present, “The Spirit of Clean Energy: Where we have been, where we are going and how to inspire change in yourself, your team and your communities.”