Energy efficiency is often called the “first fuel” of a green economy, meaning weatherization work should become plentiful.
Transitioning to clean energy from fossil fuels won’t be simple, and it will take several years, if not decades. The main mechanism is likely to be a cap-and-trade system to reduce carbon dioxide emissions. The “cap” is a ceiling on the total emissions allowed per year. Major emitters—such as coal plants, oil refiners, and natural gas producers—will purchase a designated number of emissions permits. Emitters may “trade” in permits if they need more than their share or find they can do with less. Over time, the cap is lowered and emitters are forced to conserve energy and transition to clean alternatives—alternatives that will largely depend on a vibrant manufacturing sector, able to produce the major components and subcomponents of new technologies in demand.
Hence, this could be a great opportunity for U.S. manufacturers. Moreover, the manufacturing sector has one of the highest job-multiplier effects of any sector of the economy, with each manufacturing job spurring the creation of 2.4 other jobs.1
A cap-and-trade system will increase the costs of energy generated from fossil fuels. A share of these costs will be passed on to energy consumers. Through poor design and leakage, homes and buildings account for nearly 40 percent of all U.S. carbon emissions.2 Once the clean-energy transition takes off in earnest,3 energy efficiency becomes “the first fuel”—the fastest, cheapest, and cleanest way to meet future energy needs. Wind turbines and solar panels may be the more dramatic images people associate with clean energy, but caulk guns and fiberglass insulation will be no less important. The construction industry, in addition to building wind turbines and installing solar panels, will have the job of making existing buildings and homes more efficient.
A greener economy is very good news for the manufacturing and construction sectors. Together, they accounted for roughly half of all the jobs lost since the recession started in 2007.4
In This Section
- Clean Energy in the Rust Belt
- Manufacturing and the Middle Class
- How U.S. Firms Can Be Competitive in the Global Economy
- Retrofits and Carbon Reduction
- Green Manufacturing for Green Construction
Footnotes
- Daniel Luria and Joel Rogers, “Manufacturing, Regional Prosperity, and Public Policy,” in Retooling for Growth: Building a 21st Century Economy in America’s Older Industrial Areas, eds. Richard M. McGahey and Jennifer S. Vey, Brookings Institution Press, Washington, D.C. [back]
- Global Insight (October 2008), Current and Potential Green Jobs in the U.S. Economy, Prepared for the U.S. Conference of Mayors. [back]
- U.S. Department of State (April 2009), “Energy Efficiency: The First Fuel,” eJournal USA, Volume 14, Number 4. [back]
- Heidi Shierholz (October 2, 2009), Jobs Picture, October 2, 2009, Economic Policy Institute. [back]
Issues
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