Data Source: U.S. Energy Information Administration, 2021 State Energy Data System (SEDS), U.S. Department of Commerce, Bureau of Economic Analysis.
Analysis by Beacon Economics
Highlights
- In 2021, California had the fourth-highest energy productivity in the U.S., generating $4.68 of GDP in 2021 (inflation-adjusted in 2021 U.S. dollars) for every 10,000 British Thermal Units (BTU) of energy consumed, behind the District of Columbia (1,019.9 Trillion Btu), New York (537.7 Trillion Btu), and Massachusetts (477.4 Trillion Btu).
- California has continuously outperformed the rest of the U.S. in terms of energy efficiency gains as share of GDP produced—averaging a 4.0 percent compounded average growth rate (CAGR) between 2011 and 2021, which is double the 1.8 percent CAGR recorded for the rest of the U.S. over the same period. However, the growth rate has slowed since 2016, especially in 2021 (+3.7% from 2020) compared to the previous increase in 2020 (+4.6% from 2019). In order to meet the SB 350 targets—which includes requiring California to double statewide energy efficiency savings172 —California must at least maintain its average annual growth rate of 3.5 percent. At the current trajectory, the state is on track to reach the productivity levels required for the 2030 and 2050 emissions goals.
172 California Energy Commission. Clean Energy and Pollution Reduction Act – SB 350. Available at: https://www.energy.ca.gov/rules-and-regulations/energy-suppliers-reporting/clean-energy-and-pollution-reduction-act-sb-350
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