Report: Clean Mobility Contributes $18.8B to State Economy Annually

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The clean mobility sector in Michigan contributes $18.8 billion to the state’s economy and generates more than $700 million in state and local tax revenue annually, according to a new economic analysis released today by Clean Fuels Michigan, a Lansing-based group of local companies and organizations focused on clean transportation.

The study was conducted by Lansing’s Public Sector Consultants and analyzed economic benefits that result from private sector investments in research, development, and commercialization of clean mobility technologies. Clean mobility includes vehicles that use less-polluting alternatives to fossil fuels, such as biofuels, propane, natural gas, hydrogen fuel cells, electrification, and hybrids.

“Whether we are looking to support advanced mobility innovations like autonomous or connected vehicles, preserve and grow our skilled workforce, or do more to support clean energy solutions, clean transportation technologies are truly the backbone of a global arms race towards the next generation of mobility,” says Mike Alaimo, executive director of Clean Fuels Michigan. “As the auto capital of the world, Michigan needs to ensure that our policies reflect the rapid change and fierce competition in the global arena.”

The study also found that with indirect and induced employment, Michigan’s clean mobility supply chain contributes more than 69,000 jobs to the state’s economy. It currently has 29,000 direct clean fuel vehicle jobs. The study predicts technology and policy changes will push the vehicle sector toward clean fuels and that clean fuel vehicles have enormous potential to decrease health care costs associated with poor air quality.

“The rapid growth of clean fuel vehicles has big implications for Michigan’s automotive, tech, and energy industries, which make up a significant portion of the state’s workforce,” says Jeff Guilfoyle, vice president of Public Sector Consultants and lead author of the study. “Millions of these vehicles are projected to be on our roads over the next few years. Government policies have and will continue to play an important role when looking at ways this evolving industry can affect Michigan’s overall economic health.”

Michigan automakers and utility companies are working to support the increased adoption of electric vehicles.

“DTE Energy is working to ensure plug-in electric and natural gas vehicles (PEVs and NGVs respectively) are integrated in a manner that ensures safe and reliable operation of the grid,” says Rob Bacyinski, program manager of natural gas vehicle business development at DTE Energy and chair of the board at Clean Fuels Michigan. “We believe that clean fuels and electric vehicles will bring added benefits to not only the energy grid, but customers and the public at large.”

The full report can be found here.

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