Instead you have to ship things from out of state and other countries, which generates emissions and pollution itself that might actually be more than local production.
Its the same issue as housing. Endless rules and regulations, many of which make no attempt at doing anything but block, cause the wealth of socirty to be siphoned away. An apartment project in LA with permits complete is worth twice as much as one without. How do we see this and expect our economy to do anything except drown in bureaucracy?
My advice is dont ever manufacturing anything in CA. They will try and kill your business for simply existing no matter how perfect you are.