Economic Development Now

As climate change has become increasingly evident, the support for a greener economy has grown. The 2009 stimulus package was one of the first government policies that allocated funding for green industries. President Obama included $20 billion for green economy investments, which included $500 million for green job training. This action began shifting our economy to include large energy sectors focused on environmental health. President Biden has made it known that he plans to support and invest in the green economy. Growth in green industries will help Biden achieve his goal of a zero carbon emission energy sector by 2035. 

In the past month, multiple legislations and proposals have been introduced to help with the shift towards a greener economy. Sen. Joe Manchin (D-W.Va.) introduced legislation which would provide $8 billion in tax credits for manufacturers in coal and fossil fuel communities. These credits would help manufacturers shift their production to climate-friendly products, creating new and sustainable green jobs in the process. President Biden’s $2 trillion infrastructure plan supports a green economy by building clean energy infrastructure. The proposal includes $100 billion to expand and improve power lines and drive a shift towards clean energy. For a green economy to succeed, there needs to be both proper investment and support for impacted local economies.

Challenges

The green economy movement has consistently faced opposition. Even with the recent policy support, the green economy will continue to face challenges moving forward. One of these is whether fossil fuel workers will make the switch to green jobs. The current median wage in fossil fuel power generation is higher than the median wage in both solar and wind energy. These workers already feel vulnerable because their jobs are threatened by the green movement, so convincing them to switch to green jobs will be a major challenge.

Workforce development is another test the green economy must face. A Brookings report found that green jobs require greater scientific knowledge and technical skills than the average job. Ensuring the workforce is skilled and prepared to take on the influx of green jobs will be a challenge moving forward.

Long-term job creation is another challenge facing the green economy. The process of building green infrastructure creates numerous construction jobs. Unfortunately, after the construction process fewer workers are needed to run a solar or wind farm than your typical coal-fired power plant. This could be a serious problem if there aren’t enough long-term green jobs to take on displaced fossil fuel workers.

The green economy and economic development                                                           

Green industries can help a local economy grow and become more competitive. In part two of this series, we will examine how local government and EDOs can support green job creation within their region.