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Keeping California’s oil in the ground will improve health but affect jobs

By Harrison Tasoff - The Current, May 18, 2023

As society reckons with climate change, there’s a growing call to keep fossil fuels right where they are, in the ground. But the impact of curtailing oil production will depend on the policies we implement to achieve this.

An interdisciplinary team of researchers investigated the carbon emissions, labor and health implications of several policies to reduce oil extraction, with a special focus on how the effects vary across different communities in California. Their results, published in Nature Energy, illustrate the tradeoffs between different strategies. For instance, models banning oil extraction near communities produced greater health benefits across the state, but they also led to more job losses, with disadvantaged communities feeling about one third of both the costs and the benefits.

With a goal to reach carbon neutrality by 2045, California is currently implementing some of the world’s most ambitious climate policies. As the country’s seventh largest oil-producing state and the world’s fifth largest economy, California provides a unique setting to study supply-side decarbonization policies. It already has a carbon cap-and-trade program and is currently debating a setback policy that would ban new oil production near communities.

Many considerations

Petroleum production is a multifaceted endeavor. The greenhouse gas emissions from burning fossil fuels are the main driver of climate change. Extracting these resources also emits CO2 into the environment, in addition to air pollution and toxic substances. Any policies seeking to curb oil production will affect people for better and worse. The industry employed 25,000 Californians in 2019, and provides tax revenue to local governments. “Our analysis is trying to quantify what those tradeoffs look like as the state considers different policies,” said co-author Kyle Meng, an associate professor in UC Santa Barbara’s economics department and the Environmental Markets Lab (emLab) at the Bren School of Environmental Science & Management.

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