Data Source: U.S. Energy Information Administration, State Energy Data System (SEDS), U.S. Department of Commerce, Bureau of Economic Analysis.
Analysis by CEC Economics
Highlights
- In 2023, California maintained its position of having the fourth-highest energy productivity in the U.S., generating $5.68 of GDP in 2023 (in 2023 dollars) for every 10,000 British Thermal Units (BTU) of energy consumed. This puts the state behind only the District of Columbia ($13.05 per 10,000 BTU), New York ($6.32 per 10,000 BTU), and Massachusetts ($6.23 per 10,000 BTU).
- California has continuously outperformed the rest of the U.S. in terms of energy efficiency gains as a share of GDP produced—averaging a 3.8% compounded average growth rate (CAGR) between 2013 and 2023 compared to the 2.3% CAGR recorded for the rest of the U.S. during the same period.
Challenge
- After posting lower energy productivity in 2022 than the previous year, energy productivity resumed growth but at a tepid rate in California. California’s energy productivity was 2.6% higher in 2023 than in 2022, which compared unfavorably relative to the 4.5% growth from the rest of the U.S. The higher growth from outside of California is due to having both year-over-year GDP growth (2.9% versus California’s 2.0%) and lower energy consumption (-1.3% versus California’s -0.6%). Continued setbacks could jeopardize the state’s chance of meeting the SB 350 targets, which include requiring California to double statewide energy efficiency savings.117
117 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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