The economic downturn is now a reality and one solution above all others that politicians are focusing on is the creation of green jobs. But are green jobs a reality and will they pose a solution to the thousands of unemployed Americans? Is this not just idealism used by politicians to feed a solution seeking country? Well, according to one recent report funded by the nonpartisan nonprofit group Next 10 and written by two University of California, Berkeley professors, the signs are strong that the creation of green jobs are an imminent reality and can be a dramatic step in turning around the current economic debacle. The report releases the findings of a first of its kind study that focuses upon the economic implications of California’s leadership in commitment to sustainability initiatives over the last 35 years.
Analyzing data from the US Bureau of Economic Analysis and the California Regional Economies Employment Commission, the report finds direct connections in the state’s employment and income growth to the implementation of the state’s sustainability measures. These measures put into place over the last 35 years include the policies of the California Public Utilities Commission and legislative measures in the areas of energy efficiency, alternative energy, green building, and energy efficient appliances. According to the report, the historical data proves that in the past 35 years California has already created $1.5 million new jobs, and $45 billion in income, while at the same time saving $56 billion on energy costs due to these policies.
The researchers then take their analysis one more step forward and apply the historical findings to the foreseeable California future. They focus on California’s recently passed Global Warming Solutions Act, AB32, signed into law by the governor in 2006. The goal of AB32 is to reduce state emissions to 1990 levels by 2020 or achieve a 30% reduction from today’s emission levels and an 80% reduction from the 1990 levels by 2050. The California Air Resources Board (CARB) was tasked to create a draft implementation plan that outlined the policies that the state will need to put into place to actualize the standards set out by AB32. CARB’s plan is slated to be finalized in December 2008 and significant action should follow thereafter. Extrapolating the historical data by using the Berkeley Energy and Resources (BEAR) model for forecasting economic results, the study is able to predict AB32′s effects. They estimate that if the measures are put into place and the standards set out in AB32 are met, it is possible to boost California’s economy with as many as 403,000 new jobs, increase salaries by as much as $48 billion statewide, and create a savings of $76 billion.
Surely there will be naysayers who will harp that facing economic downturn, an emerging market such as the green economy is not the place to hedge your bets, but in the last few months of dismal headlines, this study provides not only a glimmer of hope for the future of the Golden State but concrete evidence that sometimes a path that is both idealistic and altruistic can also ultimately increase each of our bottom lines.
The full text of the report by Berkeley Professors David Roland-Holst and and Fredrich Kahrl funded by Next10 can be found at www.next10.org/research
