JOEL KOTKIN: Who Gets Hurt with Green Policies?

Since the early 2000s, governors and legislators from both parties have signed onto a climate agenda in California that is making energy steadily unaffordable.

Gasoline in California, according to AAA, which tracks national gas prices daily, costs an average of about $4.78, compared with $3.16 nationally. The cost of electricity in the state is now the highest in the continental U.S., at 30.22 cents per kilowatt hour.

You might want to blame the discrepancies on greed — Big Oil practicing price gouging, as Gov. Gavin Newsom has suggested, and utilities lining their shareholders’ pockets. But at the pump and on your light and power bill, California’s high energy prices are better understood as a self-inflicted wound, traceable to the state’s quixotic green energy policy.

Log In
Advertisement
Voices
Joel Kotkin
The high cost of California’s green energy policies
A vehicle plugged in for charging
An electric vehicle plugged in at a charging station in Anaheim. California’s climate agenda relies on expensive, and intermittent, energy sources, such as wind and solar.
(Jae C. Hong / Associated Press)
By Joel KotkinContributing writer
May 7, 2025 3 AM PT

Since the early 2000s, governors and legislators from both parties have signed onto a climate agenda in California that is making energy steadily unaffordable.

Gasoline in California, according to AAA, which tracks national gas prices daily, costs an average of about $4.78, compared with $3.16 nationally. The cost of electricity in the state is now the highest in the continental U.S., at 30.22 cents per kilowatt hour.

You might want to blame the discrepancies on greed — Big Oil practicing price gouging, as Gov. Gavin Newsom has suggested, and utilities lining their shareholders’ pockets. But at the pump and on your light and power bill, California’s high energy prices are better understood as a self-inflicted wound, traceable to the state’s quixotic green energy policy.

The notoriously high cost of gas in the state is the result of a lot of factors — we tax gas to pay for road infrastructure and a less-polluting fuel mix in the summer months. Last year, Sacramento decided to move harder, faster toward its goal of a carbon-less future, adding disincentives for refineries and incentives for EVs that the California Air Resources Board has predicted will add 47 cents a gallon at the pump.
Advertisement

Overall, California’s zero-carbon climate policies — pushing EVs as your next car purchase and heat pumps to cool and heat your house — rely largely on electricity that in turn depends on expensive, and intermittent, energy sources, such as wind and solar. Come hell or high water, California’s leaders are trying to regulate, tax and incentivize their way to electricity that is 100% carbon-free by 2045.

Unfortunately, as green-skeptic energy analyst Robert Bryce notes in books and on his Substack, wherever governments have tried to base their energy supply on a swift shift to renewables — the UK, Germany, California — the result has been huge spikes in energy prices. Germany’s vaunted industrial economy has slowed in part, according to most observers, because of the high cost of renewable energy.

It’s a built-in cost of government run by crooks and morons.