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Park on Rising Temperatures and Sinking Productivity

Jisung Park, assistant professor of public policy and environmental health sciences, spoke with Marketplace about the impact of climate change on economic productivity. The International Labor Organization predicts that heat stress linked to global warming could drain more than $2 trillion from the world’s gross domestic product. In hot weather, people work more slowly, need more breaks and make errors, studies have found. “If you work outdoors, it’s much harder to protect yourself from either the productivity or the health impacts from extreme heat,” said Park, who has conducted research showing that student test scores decline in hot weather. The effect of rising global temperatures on cognitive development is particularly acute in low-income areas where air conditioning is not available, Park has found.


 

Tilly on Selective Use of Wage Statistics

Urban Planning Professor Chris Tilly spoke to FactCheck.org about presidential candidates’ selective use of statistics to describe U.S. wages as rising, sinking or flat. Different variables — including how to adjust for inflation and which base year to choose for comparison — can lead to different conclusions. President Trump has said that “wages are rising at the fastest rate in a decade,” while Sen. Bernie Sanders has said that “the average American today has not seen a nickel more in real wages than he or she got 45 years ago.” Tilly weighed in on Sen. Cory Booker’s claim that wages are at a 60-year low, a possible reference to wages as a percentage of gross domestic income — a measure of workers’ share of the economic pie. This is a different but legitimate way of looking at wages and salaries, Tilly said, noting that it reveals what workers are getting “relative to other kinds of income recipients in the economy.”


 

Goh on Indonesian President’s Plans to Move Capital City

In a recent CityLab article, UCLA Luskin’s Kian Goh commented on the Indonesian president’s approval of a plan to relocate the nation’s capital. The current capital of Jakarta is overcrowded and sinking by a few inches per year as a result of excessive underwater pumping. “Only part of this [relocation plan] is environmental,” explained Goh, assistant professor of urban planning. She stressed the economic and political factors at play, arguing that “a move to literally reposition the capital may have to do with reframing the center of power in the country itself.” Even if the president is successful in moving the capital, the government will still need to deal with the sinking land and rising seas in Jakarta. Goh predicts that Jakarta will remain the center of economic activity in Indonesia regardless of whether the capital is moved, concluding that “the people will still be there, and the problems they face will still be there.”


DeShazo on Low-Income Workers and Growing Green Economy

JR DeShazo, Public Policy chair and director of the UCLA Luskin Center for Innovation, was featured in a KCRW broadcast discussing the explosion of the green economy. While there are 500,000 green jobs in California, they mostly benefit upper- and middle-class communities, while individuals from low-income communities are hindered by lack of education, language barriers, immigration status and travel distance from job opportunities. Companies like Grid Alternatives and O&M Solar Services are trying to change that by providing paid training for workers from low-income backgrounds. While California’s green energy policies generated 76,000 jobs in their first three years, DeShazo said that legislators are now reexamining the state’s approach to tackle the issue of equity. “The state has, in what I call the second wave of climate policies, gone back through and integrated a social justice or environmental equity component into almost every single policy,” DeShazo said. 


Newton on ‘Golden Age’ for California Democrats

In a BBC News article relating the launch of Sen. Kamala Harris’ presidential bid to a resurgence of Democratic power in California, Public Policy lecturer Jim Newton weighed in on the so-called Golden Age for California Democrats. Harris, Rep. Nancy Pelosi and Gov. Gavin Newsom represent a consolidation of the Democrats’ progressive wing. Newton explained, “You don’t have to look back very far for [California] to be fairly reliably Republican. This notion of it being an absolutely rock-solid Democratic bastion is a relatively new phenomenon.” After decades of economic failure, California is reaping the benefits of rapid economic expansion. Experts do predict a downturn, but Newton still sees opportunity for Democrats. “There’s going to be a downturn, and how Newsom handles that really will help send the message of whether this state is something different or just better than most at riding an upward business cycle,” he said.


Stoll Explains Factors Driving Migration Patterns

Luskin Public Policy Professor Michael Stoll shed light on factors driving U.S. migration patterns reported in the latest National Movers Study published by United Van Lines. In 2018, Vermont, Idaho and Oregon were the top inbound states, and New Jersey, Illinois and Connecticut were the top outbound states, according to the study, which has been picked up by news sources across the country, including Newsweek, HousingWire and InvestorPlace“Job growth, lower costs of living, state budgetary challenges and more temperate climates” help explain longer-term migration patterns to southern and western states, Stoll explained. He also commented on emerging migration trends. “Unlike a few decades ago, retirees are leaving California, instead choosing other states in the Pacific West and Mountain West,” he said. “We’re also seeing young professionals migrating to vibrant, metropolitan economies like Washington, D.C., and Seattle.” Moving and relocation company United Van Lines has tracked state-to-state migration for the past 42 years.


Yaroslavsky Offers Insight on California’s Political Landscape

Following the California midterm elections, Los Angeles Initiative Director Zev Yaroslavsky appeared on several media outlets to offer insight into the state’s shifting political landscape. In an interview with TV station KCAL 9, Yaroslavsky said Gov. Gavin Newsom is “probably going to inherit a downturn of the economy” but he expressed support for Newsom’s economic philosophy “[not to] undertake programs in the good years that you can’t sustain in the lean years.” He said the new governor has a “good track record and experience to play the role he needs to play to keep the state in line” in the face of a legislature that wants to spend and a Trump administration that is “trying to undo … virtually everything that California has been a trailblazer in.” Yaroslavsky also spoke with Fox News about the state’s Democratic supermajority. “Republicans are politically less relevant in California than they have been in years, and it is really up to the Democrats to decide what role they play,” he said. “As long as Democrats stay unified, they won’t even need bipartisan support.” In a CNBC story on the legacy of Jerry Brown, Yaroslavsky spoke about the state’s rebound after the four-term governor cut programs and services to restore fiscal stability. “[Brown] made some very tough decisions to bring California from the precipice of fiscal demise,” Yaroslavsky said. “The last four years were maybe a little easier because the economy did finally turn around and he was able to build the state back up.”


Tilly on Economic Imbalance Exacerbated by Amazon’s Search for HQ2

Urban Planning Professor Chris Tilly discussed Amazon’s failure to reverse the concentration of wealth and power in the United States in a Ringer article explaining disappointment in the company’s choice for a second headquarters. Amazon garnered national attention when it announced the search for a home for “HQ2,” inviting cities with at least 1 million residents, an established mass transit system and proximity to an international airport to apply. Many saw this as an opportunity to spur economic growth in cities beyond established hubs. However, Amazon ultimately chose two smaller sites in New York and Virginia — both close to CEO Jeff Bezos’ personal homes in Washington, D.C., and New York City. Many cities vying to lure HQ2 were never realistic options for Amazon, Tilly said. He added, “The whole thing was a show with the ultimate purpose of getting the best possible benefits from one or more cities on the short list they already had in mind. I don’t think there was a genuine process of scoring the map of the United States.” 



Climate Funds Create Jobs Luskin Center for Innovation releases study that quantifies statewide employment benefits from billions of dollars in California Climate Investments

By Colleen Callahan

Amid debate over extension of California’s cap-and-trade program aimed at reducing greenhouse gas emissions released into the environment, researchers from the Luskin Center for Innovation (LCI) at UCLA studied and quantified the number of jobs supported from the statewide initiative known as California Climate Investments, funded by cap-and-trade revenues. 

The Luskin Center for Innovation has now released the new study as California considers the job training and workforce development needed in a lower-carbon economy under 2017’s Assembly Bill 398, which extended the state’s cap-and-trade program. 

The report “Employment Benefits from Climate Investments” focuses on the $2.2 billion appropriated between 2013-14 and 2015-16 to support 29 programs created to reduce greenhouse gas emissions while providing local economic, environmental and public health benefits. The programs include investments in public transit, clean vehicles, transit-oriented affordable housing, clean energy for low-income communities and ecosystem restoration.

Many of these programs also induce consumers, businesses and government entities to contribute matching funds. The largest example of induced co-investment is the $3 billion in federal funding for California’s high-speed rail project, which would not be available without the state’s match in cap-and-trade auction proceeds, according to the researchers.

“We found that the $2.2 billion in California Climate Investments supports about 19,700 jobs, and $6.4 billion in induced co-investment supports an additional 55,900 jobs, for an estimated total of more than 75,000 jobs in California,” said JR DeShazo, the principal investigator of the study and director of LCI.

Jobs supported by California Climate Investments are diverse and cut across many different industries and economic sectors, ranging from the manufacture of clean vehicles to the restoration of degraded wetlands, according to the study.

“Given their diversity, California Climate Investment-related jobs can serve as a sample of the types of jobs supported by California’s transition to a lower-carbon economy,” said researcher Jason Karpman MURP ’16, lead author of the report. “Since California Climate Investments are one component of the state’s broad suite of strategies for addressing climate change under Assembly Bill 32 [the California Global Warming Solutions Act of 2006], the jobs reported in the study represent a fraction of the total jobs supported by the state’s effort to decarbonize.” 

Of the many economic sectors directly impacted by California Climate Investments, the construction industry stands to gain the most (54 percent of total jobs), according to the report. This is because of the significant level of investment going toward the construction of public transit systems and the construction of multiunit affordable housing near transit, among other investments. The sector receiving the second-highest number of job gains due to investments is architectural, engineering and related services. 

Impacted industries employ both blue-collar and white-collar workers. For example, the architectural and engineering sector is known for creating white-collar jobs that pay middle-class salaries. Many blue-collar construction jobs funded by California Climate Investments are covered under the state’s prevailing wage law and requirements for enrollment in state-certified apprenticeship programs. This system is designed to ensure that public works construction jobs resulting from California Climate Investments support broad occupational training and provide family-supporting pay and benefits to workers. 

“The industry-level findings in this study can be a springboard for better understanding the quality of jobs that are supported by large public investments in greenhouse gas reductions,” Karpman said. 

The modeling tool used for the LCI study focuses on quantifying job flows rather than providing granular detail about job quality, training, access for workers in disadvantaged communities and other important components of employment benefits. Because the study identifies the industries involved in each California Climate Investment program, it could be used to more deeply analyze job quality metrics that characterize those industries, including pay, benefits and career advancement opportunities. 

The study found that the California Climate Investment programs that generate the most jobs in California (per million dollars invested, as determined by their employment multiplier) devoted a greater share of investment dollars to services rather than materials. In addition, the employment multiplier of a program was also positively influenced by the share of investment dollars going to firms based in California rather than to out-of-state firms. 

“The findings could inform recommendations for legislators and agency leaders interested in maximizing the number of jobs supported by California Climate Investments,” DeShazo said.  

The researchers note that state agencies could design or update programs to involve sectors with high employment multipliers, such as social services, agriculture, forestry, engineering and construction. Administering agencies could also consider incentives for grantees that contract with vendors located in California and stipulate that they purchase materials manufactured in California, when possible. The findings suggest that these considerations, along with job quality considerations, could help the state ensure multiple employment benefits from its future investments. 

The amount of California Climate Investments appropriated annually has increased significantly since the study period’s $2.2 billion, to a total of now $6.1 billion.  

Storper Weighs In on the Battle for the Bay Area’s Soul

Professor Michael Storper of UCLA Luskin Urban Planning speaks about the “contest for the heart and soul of the Bay Area” in a wide-ranging interview with Public Knowledge. Storper says the region’s rich history of social connectivity has underpinned its economic success. Now, in the face of rising inequality, “Silicon Valley capitalism must be more than about disrupting markets and daily life.” The Bay Area must draw on its “deep intellectual and humanistic traditions,” he said, “and let’s hope that it is the beginning of a new wave of balancing the advantages of the Information Age with a new public space.”