New studies demonstrate how New Jersey can create 48,000 jobs, especially for lower-income households

New Jersey Currents|Online, Summer 2009 - Update

In June 2009, the New Jersey Environmental Federation, in coordination with the Garden State Alliance for a New Economy (GANE) and Laborers 55, co-released two complementary reports today that were prepared by the Political Economy Research Institute at the University of Massachusetts, Amherst (PERI), Center for American Progress (CAP), Green For All, and the Natural Resources Defense Council (NRDC), which outline how investment in a clean-energy economy will produce significant economic and job creation benefits.

The studies show that a $4.6 billion amount of investment would create 48,000 jobs in New Jersey. According to the analysis, shifting to a clean-energy economy will help millions of low-income Americans by creating more accessible job opportunities-with the potential for advancement-and by lowering utility bills and transportation costs.

"These reports show that investing in the clean-energy economy will create new jobs right here in New Jersey and provide opportunities for lower-income families," said Wayne Richardson, President, Laborers 55 (a new Newark-based labor union). "We can create jobs while we reduce global warming pollution and cut our dependence on foreign oil."

Green Investments, Employment and Growth from PERI and CAP explains how the combination of the American Recovery and Reinvestment Act (ARRA) and the American Clean Energy and Security Act (ACES) could serve as the foundation for bringing total clean-energy investments in the U.S. to approximately $150 billion per year, producing a net gain of 1.7 million new jobs nationally.

Green Prosperity: How Clean-Energy Policies Can Fight Poverty and Raise Living Standards in the United States from the Political Economy Research Institute at the University of Massachusetts, Amherst (PERI), Natural Resources Defense Council, and Green For All shows that shifting from traditional fossil fuel to clean energy will improve the standard of living for millions of Americans across all skill and education levels, especially among lower-income families.

"It's clearer than ever that investment in a clean energy economy will create pathways to prosperity for millions of Americans, especially in low-income communities," said Kim Gaddy, New Jersey Environmental Federation's Environmental Justice Organizer. "Moving to clean energy can be a driving force for economic growth and protecting the environment."

According to the Green Prosperity report, nearly half of the 1.7 million new jobs created by green investment will be accessible to workers with relatively low levels of formal education. Of these, nearly 75 percent will have high potential for advancement. This expansion could drive down the unemployment rate by more than one percentage point.

In addition to creating new economic opportunities, this investment will significantly contribute to improvements in energy efficiency in buildings and homes, lowering overall energy costs for consumers and especially benefiting lower-income households. These savings could be as high as 4 percent of household incomes for some families. Moving to clean energy would also improve public transportation, especially in urban areas, which could lead to an average reduction in living costs by 1 to 4 percent per family.

Benefits From a Clean-Energy Investment Program in Newark

New Jobs Created

• 11,525 new jobs overall
• (6,270 for workers with high school degrees or less)

Unemployment Rate Lowers

• Unemployment rate lowers from 5.4% to 4.4%

Lower Unemployment Rate Produces Rising Wages

• Earnings could rise 2.1% for low-income workers as unemployment in the Newark metropolitan area falls by 1%

Reduced Living Costs

• Building Retrofits could reduce living costs by up to 4%

Improved Public Transportation

• Discounting public transit fares between 25 and 50% could reduce living costs by 1 to 2%
• Households that forego the use of one car could reduce living costs by about 10%