A study by the University of California at Berkeley concludes that programs like the American Clean Energy and Security Act (ACES) would create approximately 1.9 million jobs, reaffirming the positive economic implications of clean energy policy in the U.S.
The research detailed how comprehensive clean energy legislation would result in greater job growth, real household income, and overall economic output. ACES policy is forecasted to generate between 918,000 and 1.9 million new jobs by 2020. The macroeconomic impacts also include adding at least $40 billion to GDP and increasing annual income up to $1,175 per year, the study says.
The review was conducted by a team of researchers at the University of California using a new forecasting model called EAGLE. Using the new model, which was developed through a collaboration of the University of Illinois, Yale and Berkeley, the team studied significant impacts of legislation on the U.S. economy.
Approved by the House of Representatives in June, the ACES program outlines pollution limits and is expected to incentivize large-scale investments in clean energy and energy efficiency. The act aims to reduce the United States’ dependence on foreign energy while simultaneously reducing its environmental impact.
The Political Economy Research Institute (PERI) reported similar results in June. PERI asserted that the short-term outlook regarding the combined effects of the “Stimulus Bill” and ACES would yield a net increase of around 1.7 million jobs. The PERI examination was intended to forecast short-term effects while the EAGLE model was used to analyze the long-term implications.
A study by Pew Charitable Trusts also released in June reported that clean energy jobs grew at a rate of 9.1 percent between 1998 and 2007. This dwarfed traditional job growth, which developed at a rate of only 3.7 percent, Pew found.
“The clean energy economy is poised for explosive growth,” explained Lori Grange, interim deputy director of the Pew Center. “These jobs are driving economic growth and environmental sustainability as a time when America needs both. There is a potential competitive advantage for federal and state policy leaders who act now to spur jobs, businesses and investments in the clean energy sector.”
Similar reports drafted by The U.S. Department of Energy, Environmental Protection Agency and Congressional Budget Office also advocate the positive economic effects emerging from clean energy bills. As the unemployment rate in the U.S. threatens to reach 10 percent, these studies will provide many job hunters a direction in which to aim their search.
The Obama Administration has been focused on providing economic incentives for clean energy and green awareness. The U.S. government’s implementation of environmentally focused initiatives hopes to create an increase in “green collar” jobs, which can include factory workers, equipment installers, energy consultants and auditors and green construction workers.
Research clearly shows that progressive legislation and clean operating bills are propelling the U.S. towards energy efficiency. Placing funding and education at the forefront of the environmental movement, the nation will be able to establish itself as a leader in sustainable growth.
