GreenSage E-zine 06/2008

The New Energy Industry Expected to Create >20 Million New Green Jobs

Economic Drivers for the 21st Century

Renewable energy and energy efficiency reduce the risks associated with fuel price volatility and can facilitate an industrial boom, create millions of jobs, foster new technology, and revitalize the manufacturing sector.

So are the findings published in a recent report by Roger Bezdek, Principal Investigator of Management Information Services, Inc. (MIS Inc.)for the American Solar Energy Society.

The Renewable Energy and Energy Efficiency (RE&EE) industry could, with just a moderate scenario, create over 20 million jobs — but with an advanced scenario effort could generate up to $4.5 trillion in revenue in the United States and create 40 million new jobs by the year 2030. These 40 million jobs would represent nearly one out of every four jobs in 2030, and many would be jobs that could not easily be outsourced.

The vast majority of the jobs created by RE&EE are standard jobs for accountants, engineers, computer analysts, clerks, factory workers, truck drivers, mechanics, etc. Thus, in MIS Inc.'s definition, the RE&EE industry encompasses all aspects of renewable energy and energy efficiency, and includes both the direct and indirect jobs created in both these sectors.

In this study, Renewable Energy (RE) technologies are defined primarily as hydroelectricity, biomass, geothermal, wind, photovoltaics, and solar thermal. Except for hydro and industry biomass, the RE U.S. energy contribution is small, although it is growing rapidly. Still, RE gross revenues totaled nearly $40 billion in 2006, and the RE industry was responsible for more than 450,000 direct and indirect jobs. The jobs created were disproportionately for scientific, technical, professional, and skilled workers, and more than 90 percent of the jobs were in private industry.

Estimating the size of the Energy Efficiency (EE) industry was more difficult because it is challenging to define. For purposes of this report, EE was defined and spending included for partial segments of large industries, such as vehicles, buildings, lighting, appliances, etc. It included insulation sales, energy service company (ESCO) industry sales, recycling and reuse industry sales, vehicles that get at least 10 percent better mpg than the CAFE mileage, Energy Star rated sales for lighting products and household appliances, windows and doors, and components of the industrial sector.

The results of this research demonstrates that in 2006 the combined RE&EE industry generated nearly a trillion dollars in industry sales, 8.5 million new jobs, more than $100 billion in industry profits, and more than $150 billion in increased federal, state, and local government tax revenues.

In addition, RE&EE reduce the risks associated with fuel price volatility and can facilitate an industrial boom, create millions of jobs, foster new technology, revitalize the manufacturing sector, enhance economic growth, and help reduce the trade and budget deficits.

Summary of the 2006 U.S. Renewable Energy and Energy Efficiency Industries

Industry	Revenues (billions)	Direct Jobs (thousands)	Total (direct plus indirect) Jobs Created (thousands)

Renewable Energy	$39.2	196	452

Energy Efficiency	$932.6	3,498	8,046

TOTAL	$971.8	3,694	8,498

Forecast for the growth of the RE&EE industry to 2030
U.S. Renewable Energy and Energy Efficiency Industries in 2030

	Revenues (Billions of 2006 Dollars)			Total Jobs Created (Direct Plus Indirect – Thousands)
	Base Case	Moderate Scenario	Advanced Scenario	Base Case	Moderate Scenario	Advanced Scenario

RE	$95	$227	$597	1,305	3,138	7,918

EE	$1,818	$2,152	$3,933	14,953	17,825	32,185

Total	$1,913	$2,379	$4,530	16,258	20,963	40,103

Source: Management Information Services, Inc. and American Solar Energy Society, 2007.

The base case is essentially a “business as usual” scenario, which assumes no change in policy and no major RE&EE initiatives over next 23 years.

The moderate scenario assumes that various moderate, incremental federal and state RE&EE initiatives are put in place during next two decades.

The advanced scenario “pushes the envelope.” It indicates what is possible using current or impending technologies and includes what may be realistically feasible

Want to read the full report? Download the pdf, “Renewable Energy and Energy Efficiency: Economic Drivers for the 21st Century”

Used with permission of the American Solar Energy Society, www.ases.org, copyright © 2007 American Solar Energy Society (ASES)