Economic Impacts of the PACE Program: The Contribution of Ygrene Energy Fund, Inc.

Publication Type: 
Authors: 
Adam Rose
Dan Wei
Description/Abstract: 
This study performs a regional economic impact analysis of PACE financing by one of the leading firms in the market—Ygrene Energy Fund, Inc. Since 2013, and through the end of July 2018, Ygrene has provided more than $1.16 billion to finance over 54,500 property improvement projects in over 500 cities and counties, primarily in the residential sector of California and Florida. We estimate the net impact of these financing projects on the economies of these two states, focusing on major macroeconomic indicators of gross output (sales revenue), gross domestic product (GDP), personal income, and employment. We also estimate the impacts on tax revenues for various levels of government. The estimation methodology includes both direct and various types of indirect effects rippling through the supply chains of the economy. Much of our analysis is based on the use of the Regional Economic Models, Inc. (REMI) Policy Insight Plus (PI+) Model, a widely used macroeconometricmodel at the state and local levels in the United States.