Project at a Glance

Title: Economic contribution of the California air pollution control industry.

Principal Investigator / Author(s): Killion, Mariko

Contractor: Environmental Business International, Inc.

Contract Number: 00-312

Research Program Area: Economic Analysis

Topic Areas: Benefits, Impacts


The purpose of this study is to profile the California Air Pollution Control (APC) Industry. Little economic research has been performed on this industry, and few tools exist to estimate the impact air quality policy has had on this industry. After developing an industry definition, a database of companies was constructed, surveys were performed and results were modeled into a comprehensive set of industry statistics. In 2001, the California APC Industry generated $6.2 billion in revenues representing 0.5% of the economy, and employing 32,000 Californians. The APC industry can be divided into two subsets: a "Core APC Industry" directly addressing air quality issues; and a "Clean Air Products Industry" making less-emitting products, vehicles or energy sources. The APC industry has grown from $450 million in 1970 to $6.2 billion in 2001, a compounded annual growth rate of 9%. Growth is expect to continue, although at a more modest rate, and ample opportunities exist for California APC businesses around the world. ARB programs are responsible for a considerable portion of revenues derived by APC companies. California is reasonably well positioned in the "Core APC Industry," but a potentially much larger opportunity exists of becoming leaders in the emerging "Clean Air Products Industry." Future policies can play a greater role in preserving air quality but also in stimulating the evolution of the APC industry.

For questions regarding this research project, including available data and progress status, contact: Research Division staff at (916) 445-0753

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