Achieving economic gains through the setting of environmental goals: The case of California

Abstract

Faced with volatile energy prices, rising resource costs, and income uncertainty, Californians (and the USA) are finding new ways to save money and conserve resources. Concerns about climate change are part of this. These changes not only serve as a recessionary buffer but also develop resilience toward growing external shocks for a company, household, or economic region as a whole. Contrary to conventional wisdom, well-crafted regulation can be a market driver and spur business and employment growth. California's experience, dating back to innovative policies following the 1970s energy crisis, demonstrates that economic growth and environmental improvement can be achieved together.