Wall Street Journal, 2/5/09

Re “California’s ‘Green Jobs’ Experiment Isn’t Going Well, 1/31/09”:

Cap-and-trade will be used for a minority portion of our plan to arrest greenhouse gas emissions, and where it is employed it will generate emissions reductions at the lowest possible cost. Other tools producing far greater emissions reductions in the aggregate include performance standards, smart land use, and desperately needed competition in our transportation fuel sector. Presumably Mr. Moore needs no education about the power of competition to drive down prices and produce better outcomes for consumers, but perhaps he knows little about performance standards. Through their employment in our energy sector over the past 30 years, California has saved power consumers $50 billion, made our companies more competitive, and allowed us to triple GDP per kilowatt-hour of electricity.

As for Mr. Moore’s suggestion that our unemployment rate is a result of our cap on greenhouse gases, get real. Our greenhouse gas rules don’t even go into effect until 2012. Our spike in unemployment is the result of a bust of the housing bubble fueled by easy money and federal support for greater homeownership at any cost. It’s precisely because so many people want to live in California that we were the market most influenced by those policies.

David Crane
Senior Economic Advisor to Gov. Arnold Schwarzenegger
Sacramento, Calif.