Clean Energy Economy
J U N E 2 0 0 9
The Pew Charitable Trusts applies the power of knowledge to solve today’s most challenging problems.
Our Pew Center on the States identifies and advances effective policy approaches to critical issues facing
states, and our Pew Environment Group promotes practical, meaningful solutions to some of the world’s
most pressing environmental problems.
PEW CENTER ON THE STATES
PEW ENVIRONMENT GROUP
Susan Urahn, managing director
Joshua Reichert, managing director
Project Team
Kevin Curtis
Kil Huh
Brendan Hill
Phyllis Cuttino
Lori Grange
Jeannette Lam
Laura Lightbody
E. Brooks Riley
Michele Mariani Vaughn
Shannon Heyck-Williams
Jill Antonishak
Melissa Maynard
Jane Breakell
Carla Uriona, design
Sean Greene
Research Consultants: Collaborative Economics, Inc.
ACKNOWLEDGMENTS
This report benefited tremendously from the insights and expertise of an advisory panel and two
additional external reviewers. These experts provided feedback and guidance at critical stages in
the project. While they have screened the report for accuracy, neither they nor their organizations
necessarily endorse its findings or conclusions.
Advisory Panel: Marilyn Brown, professor, School of Public Policy, Georgia Institute of Technology;
Doug Cameron, managing director and chief science advisor, Piper Jaffray; Joe Cortright, vice president
and principal, Impresa; Jeff Finkle, CEcD, president and CEO, International Economic Development
Council; Tim Woodward, managing director, Nth Power; and Joel S. Yudken, PhD, principal, High
Road Strategies, LLC.
External Reviewers: Mark Z. Jacobson, professor of Civil and Environmental Engineering and director,
Atmosphere/Energy Program, Stanford University; and Joe Fargione, Lead Scientist, North America
Region, The Nature Conservancy.
We would like to thank our Pew colleagues—Andrew McDonald, Brandon MacGillis, Kymberly
Escobar, Lisa Cutler, Janet Lane, Alyson Freedman and Jessica Riordan—for their assistance with
communications and dissemination. We thank Doug Henton, John Melville, Tracey Grose, Dean
Chuang, Gabrielle Maor and Tiffany Furrell of Collaborative Economics. And we thank Will Wilson
for his profiles of companies in the clean energy economy, Mary Jo Waits of the National Governors
Association for her suggestions and feedback, Kathy Litzenberg for her editorial assistance, John Tierno
for his graphic assistance, and Mike Heffner, Lucy Pope and Denise Kooper of 202design for their design
assistance.
For additional information on The Pew Charitable Trusts, please visit www.pewtrusts.org.
This report is intended for educational and informational purposes. References to specific products,
services, companies and policy makers have been included solely to advance these purposes and do not
constitute an endorsement, sponsorship or recommendation by The Pew Charitable Trusts.
©2009 The Pew Charitable Trusts
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The Clean Energy Economy | The Pew Charitable Trusts
June 2009
Dear Reader:
Public- and private-sector leaders are working hard to create a brighter economic future for our
country, one in which new industries create well-paying, enduring jobs for Americans and spark
growth from coast to coast.
The clean energy economy, still in its infancy, is emerging as a vital component of America’s new
economic landscape. That’s the finding of The Clean Energy Economy: Repowering Jobs, Businesses and
Investments Across America, a groundbreaking analysis by The Pew Charitable Trusts that sheds light
on an increasingly important part of the nation’s economic recovery.
Pew counted actual jobs, companies and investments in every state and the District of Columbia aimed
at developing clean, renewable sources of energy, increasing energy efficiency, reducing greenhouse gas
emissions that cause global warming, and conserving water and other natural resources. We found that
jobs and businesses in the emerging clean energy economy have grown at a faster rate than U.S. jobs
overall. And they are poised for even greater growth, driven by increasing consumer demand, venture
capital infusions by investors eager to capitalize on new market opportunities, and policy reforms
by federal and state lawmakers seeking to spur America’s fiscal recovery, reduce our dependence on
foreign oil and protect the environment.
This report reflects the intersection of two of Pew’s lines of work. The Pew Center on the States identifies
and advances effective approaches to improve states’ fiscal health and economic competitiveness, and
the Pew Environment Group promotes practical, meaningful policy solutions to some of the world’s
most pressing environmental problems.
Across the country, state lawmakers also are pursuing the dual goals of economic growth and
environmental sustainability. A growing number of states are implementing policies to capitalize on
the clean energy economy, from renewable portfolio and energy efficiency standards to financial
incentives for public- and private-sector innovation and investment.
At the federal level, the American Recovery and Reinvestment Act provides tens of billions of dollars
to bolster those efforts. But to realize the clean energy economy’s full potential, federal leaders must do
more. The nation needs a comprehensive, economy-wide energy plan, a market-based system that will
significantly reduce emissions that cause global warming and derive more of America’s energy supply
from clean, renewable sources. Strong federal policies will accelerate the growth of this economic sector
by generating jobs and businesses that develop clean energy and increase energy efficiency.
As federal and state lawmakers consider these and other critical reforms, Pew will conduct follow-up
research to determine which policy approaches most effectively help America achieve the double
bottom line of economic growth and environmental sustainability. We hope this report will inform
and guide our nation’s leaders as they seek to expand our emerging clean energy economy.
Sincerely,
Susan Urahn
Joshua Reichert
Managing Director
Managing Director
The Pew Center on the States
The Pew Environment Group
The Clean Energy Economy
1
Executive Summary
America’s clean energy economy
and engineers to electricians, machinists and
is dawning as a critical component
teachers—grew by 9.1 percent, while total
jobs grew by only 3.7 percent. And although
of the nation’s future.
we expect job growth in the clean energy
economy to have declined in 2008, experts
Research by The Pew Charitable Trusts
predict the drop in this sector will be less
shows that despite a lack of sustained policy
severe than the drop in U.S. jobs overall.
attention and investment, the emerging clean
Pew’s research indicates a strong start for a
energy economy has grown considerably—
new economy still very much in its infancy.
extending to all 50 states, engaging a wide
To put our clean energy economy numbers
variety of workers and generating new
in perspective, consider the following.
industries. Between 1998 and 2007, its jobs
Biotechnology, which has developed
grew at a faster rate than overall jobs. Like
applications for agriculture, consumer
all other sectors, the clean energy economy
products, the environment and health
has been hit by the recession, but investments
care and has been the focus of significant
in clean technology have fared far better
public policy and government and private
in the past year than venture capital overall.
investment, employed fewer than 200,000
Looking forward, the clean energy economy
workers, or about a tenth of a percent of total
has tremendous potential for growth, as
U.S. jobs in 2007, according to a 2008 Ernst
investments continue to flow from both the
& Young report. And the well-established
government and private sector and federal
traditional energy sector—including utilities,
and state policy makers increasingly push for
coal mining and oil and gas extraction,
reforms that will both spur economic renewal
industries that have received significant
and sustain the environment.
government investment—comprised about
By 2007, more than 68,200 businesses across
1.27 million workers in 2007, or about
all 50 states and the District of Columbia
1 percent of total employment.
accounted for about 770,000 jobs that achieve
Growing attention and financial support from
the double bottom line of economic growth
both the private and public sectors indicate
and environmental sustainability (Exhibit 1).
that the clean energy economy is poised to
In today’s tough financial climate, when
expand significantly. Signaling interest in
millions of jobs have been lost, those numbers
new market opportunities, venture capital
may sound modest. Three quarters of a
investment in clean technology crossed the
million jobs represent half a percent of all
$1 billion threshold in 2005 and continued to
jobs in the United States today. But Pew’s
grow substantially, totaling about $12.6 billion
research shows that between 1998 and 2007,
during the past three years. Although they
clean energy economy jobs—a mix of white-
have dropped significantly in recent months
and blue-collar positions, from scientists
because of the recession, investments in clean
The Clean Energy Economy
3
E X E C U T I V E S U M M A R Y
technology are actually faring better than other
there is evidence that this era is coming to
industries: They were down 48 percent in the
a close,” a National Governors Association
first three months of 2009 compared with a
report noted in 2007. “Meanwhile, we are
year earlier, while total venture capital across
increasingly aware of the serious impacts of
all sectors was down 61 percent for the same
global climate change—and how America’s
period. “It’s important not to miss the forest for
consumption of fossil fuels is contributing
the trees,” Nicholas Parker, executive chairman
to a warming Earth.”
of the Cleantech Group, said in January
2009. “In 2008, there was a quantum leap
Pew’s analysis shows that every state has a
in talent, resources and institutional appetite
piece of America’s clean energy economy.
for clean technologies. Now, more than ever,
Texas, for instance, generates more electricity
clean technologies represent the biggest
from wind than any other state, had more
opportunities for job and wealth creation.”
than 55,000 clean energy economy jobs in
2007, and attracted more than $716 million
Between 2006 and 2008, 40 states and the
in venture capital funds for clean technology
District of Columbia attracted venture capital
between 2006 and 2008. Tennessee has
investments in technologies and industries
succeeded in cultivating jobs in recycling,
aimed at economic growth and environmental
waste treatment and water management,
sustainability. And all states will receive a
among other conservation industries; jobs
major infusion of federal funds through the
in Tennessee’s clean energy economy grew
recently enacted American Recovery and
by more than 18 percent between 1998 and
Reinvestment Act (ARRA), which allocates
2007, compared with 2.5 percent growth
nearly $85 billion in direct spending and tax
in all jobs in the state. Colorado has raised
incentives for energy- and transportation-
the amount of power electricity providers
related programs.
must supply from renewable energy sources
to stimulate job growth in solar and wind
Every State Has a Piece of the Clean
power and other forms of clean energy
Energy Economy
generation. Ohio ranked among the top five
states with the most jobs in clean energy,
With traditional manufacturing jobs
energy efficiency and environmentally
declining during the past decade, states have
friendly production in 2007. Idaho, Kansas,
been working aggressively to develop new
Mississippi and South Dakota are among more
industries and create jobs that will endure—
than a dozen states where the number of jobs
and remain within U.S. borders. They also
in the clean energy economy in 2007 was
have been working to address the public’s
modest, but the average annual growth rate
concerns about high energy prices, national
of those jobs was among the highest in the
security and our dependence on foreign
country. All told, in 38 states and the District
oil, and global warming—all with an
of Columbia, job growth in the clean energy
understanding that America is on its way to
economy outperformed total jobs growth
being a carbon-constrained country. “While
between 1998 and 2007. In a number of
our economic engine has for years been
states, job gains in the clean energy economy
powered by relatively inexpensive energy,
have helped lessen total job losses.
4
The Clean Energy Economy | The Pew Charitable Trusts
E X E C U T I V E S U M M A R Y
Defining the Clean Energy Economy
A clean energy economy generates jobs, businesses
and investments while expanding clean energy
Pew partnered with Collaborative Economics,
production, increasing energy efficiency, reducing
Inc., a public policy research firm based
greenhouse gas emissions, waste and pollution,
in California, on the research. While
and conserving water and other natural resources.
organizations on both sides of the political
spectrum have weighed in with forecasts and
The clean energy economy cuts across five
economic modeling to estimate the size of the
categories: (1) Clean Energy; (2) Energy
clean energy economy, Pew’s analysis is the
Efficiency; (3) Environmentally Friendly
first of its kind to count actual jobs, businesses
Production; (4) Conservation and Pollution
and investments for each of the 50 states and
Mitigation; and (5) Training and Support.
the District of Columbia. Our numbers are
conservative and may be lower than some
While specific jobs and businesses will change
other reports for three reasons: First, we
in the coming decades, the five categories of
developed a stringent definition of the clean
the clean energy economy will not—providing
energy economy; second, we used a new,
a clear, practical and consistent framework for
labor-intensive methodology that counted
federal, state and local policy makers and the
only companies that we could verify online
private sector to track investments, job and
as being actively engaged in the clean energy
business creation, and growth over time.
economy; and third, we counted businesses
and jobs supplying products and services
Jobs of Today, and Jobs of Tomorrow
generated by the clean energy economy,
Pew’s framework takes into account that
not the companies using these products and
technology, scientific research, market forces
services to make themselves “greener” (i.e.,
and public policy will continue to drive
we counted only companies and jobs on the
innovation and competition, so the largest
supply side, not the demand side, of the
segments of today’s clean energy economy
clean energy economy).
may not be its driving forces tomorrow.
Policy makers, business leaders and the
Our data show that 65 percent of today’s clean
public need credible, reliable data to ground
energy economy jobs are in the category of
their policy deliberations and choices, and
Conservation and Pollution Mitigation—a
to understand where emerging economic
sector that reflects the growing recognition
opportunities lie. They also need a clear,
among the public, policy makers and business
concrete and common definition of what
leaders of the need to recycle waste, conserve
constitutes the clean energy economy so they
water and mitigate emissions of greenhouse
can track jobs and businesses and gauge the
gases and other pollutants. But three other
effectiveness of public policy choices and
categories—Clean Energy, Energy Efficiency
investments.
and Environmentally Friendly Production—
Based on significant research and input from
are growing at a far faster clip. And about
experts in the field, including the advisory
80 percent of venture capital investments
panel that helped guide this study, Pew
in 2008 were in the sectors of Clean Energy
developed the following definition:
and Energy Efficiency: businesses and jobs
working to develop clean, renewable energy
The Clean Energy Economy
5
E X E C U T I V E S U M M A R Y
sources such as wind and solar and products
because they create significant incentives for
and services that reduce our overall energy
both the private and public sectors to develop
consumption—all of which will help meet the
new technologies, infrastructure and processes
demands of a carbon-constrained economy.
for clean energy, efficiency and conservation.
Now that we have baseline data in hand,
The flow of venture capital indicates which
Pew will conduct follow-up research to assess
sectors are most attractive to investors and
which approaches are particularly effective in
have the greatest growth potential. The
generating jobs, businesses and investments in
number of jobs and businesses in Clean
the clean energy economy.
Energy and Energy Efficiency will grow
over time—and as the country increases the
State policies. Governors and legislators
amount of power it draws from renewable
across the country are seeking to get to the
sources, we will generate less waste, reduce
double bottom line of economic growth and
our reliance on foreign oil and produce
environmental sustainability by adopting
fewer carbon emissions that cause global
policies to advance the clean energy economy.
warming. That does not mean that jobs in
the Conservation and Pollution Mitigation
l Financial incentives. Forty-six states
category will disappear. As other countries
offer some form of tax incentive
seek to follow America’s lead, they increasingly
to encourage corporations and
will need help managing their finite natural
residents to use renewable energy or
resources and addressing the adverse effects
adopt energy efficiency systems and
of their use of fossil-fuel energy sources—
equipment. Thirty-three states provide
creating a new market for our products,
residential, commercial and industrial
technology and know-how.
loan financing for the purchase of
renewable energy or energy efficiency
systems or equipment. And 22 states
Public Policy’s Role in Driving the Clean
and the District of Columbia offer
Energy Economy
rebate programs to promote the
Public policy is another important indicator
installation of solar water heating or
of the future of the clean energy economy.
solar panels for electricity generation.
Policies intended to advance the clean energy
l Renewable portfolio standards. Twenty-
economy—from comprehensive energy
nine states and the District of
plans, renewable energy standards and energy
Columbia have adopted renewable
efficiency measures to the development of
portfolio standards, which require
alternative fuels, job retraining and waste
electricity providers to supply a
reduction efforts—have been adopted or are
minimum amount of power from
being actively considered by both the federal
renewable energy sources.
government and states. It is too early to tell
l Energy efficiency standards. Nineteen
to what degree these efforts will succeed in
states have established energy
stimulating U.S. job growth, strengthening
efficiency standards for energy
America’s competitiveness, curbing pollution
generation, transmission and use.
and conserving resources. But Pew’s analysis
indicates such policies have great potential
6
The Clean Energy Economy | The Pew Charitable Trusts
E X E C U T I V E S U M M A R Y
l Regional clean energy initiatives.
standards built on earlier legislation. In 2007,
Twenty-three states are participating
President George W. Bush signed into law the
in three major regional initiatives
first congressionally mandated increase in fuel
seeking to increase renewable energy
efficiency standards for cars and light
generation and reduce carbon
trucks in more than 30 years. The Energy
pollution from power plants that
Independence and Security Act of 2007 is
causes global warming.
projected to save consumers $25 billion at the
gas pump, save 1.1 million barrels of oil a day
l Vehicle emissions standards. Fourteen
and reduce greenhouse gas emissions.
states and the District of Columbia
have adopted (and three more states
Enacted in February 2009, ARRA—the federal
are poised to adopt) California’s
stimulus bill—includes an array of provisions
vehicle emissions standards, which
to spur clean energy generation and energy
allow states the right to require
efficiency businesses, jobs and investments.
automakers to reduce carbon
Among the almost $85 billion the package
emissions from new cars and light
allocates to energy- and transportation-related
trucks more aggressively than federal
spending, about $21 billion is dedicated to
standards mandate. On May 19, 2009,
extending tax incentives for wind, solar and
President Barack Obama established
other renewable energy manufacturers. ARRA
national limits on vehicle emissions by
also provides more than $30 billion for direct
adopting fuel efficiency standards that
spending on clean energy programs, including
match California’s.
$11 billion to modernize the nation’s
electricity grid; $2 billion for advanced
Federal policies. The federal government
battery technology; more than $6 billion
also has played a critical role, adopting
for state and local efforts to achieve energy
policies and making investments that have
efficiency; $5 billion for weatherization of
spurred economic growth and environmental
low-income homes; $500 million for job
protection from coast to coast. Laws enacted
training to help workers participate in the
in the 1960s and 1970s helped develop
clean energy economy; and $300 million to
the recycling, waste reduction and waste
purchase thousands of new, fuel-efficient
management industries. The EPA’s Energy
vehicles for the federal fleet from American
Star and Water Sense certification and labeling
auto companies.
initiatives long have helped consumers choose
and use products that conserve energy and
Moving forward. Given America’s need to
water. And for almost two decades, the
create enduring jobs and industries while
U.S. Department of Commerce has helped
conserving natural resources and reducing
manufacturers improve efficiency, reduce
carbon emissions, federal leaders are
waste and develop clean technologies and
deliberating additional measures to spur
products.
the clean energy economy.
In the last three years, federal policy makers
President Obama has signaled his support
have taken major steps to drive the clean
for a federal clean energy plan to reduce
energy economy forward. President Obama’s
greenhouse gas emissions by at least 80
recent efforts to enact stronger fuel efficiency
percent by 2050, and a national renewable
The Clean Energy Economy
7
E X E C U T I V E S U M M A R Y
portfolio standard that would require that
would apply to electric utilities, oil companies
25 percent of the nation’s energy supply be
and other entities that produce more than
derived from renewable sources by 2025. At
25,000 tons of carbon dioxide each year. The
this writing, the U.S. House of Representatives
bill would increase significantly the amount
is considering the American Clean Energy and
of energy derived from low- or zero-carbon
Security Act, a market-based proposal that
sources, including renewables—meaning
would limit overall greenhouse gas emissions
that businesses and jobs would be generated
and distribute tradable federal allowances for
to develop clean energy sources to meet the
each ton of pollution emitted. The program
demand.
EXHIBIT 1
THE U.S. CLEAN ENERGY ECONOMY BY THE NUMBERS
By 2007, 68,203 businesses in the United States had generated more than 770,000 jobs in the clean energy economy. And between
2006 and 2008, about $12.6 billion of venture capital investments was directed toward clean technology businesses in 40 states and the
District of Columbia. The U.S. clean energy economy is an emerging source of jobs that achieve the double bottom line of economic
growth and environmental sustainability. Every state has a piece of America’s clean energy economy.
CLEAN
OVERALL
VENTURE
CLEAN
OVERALL VENTURE
CLEAN
CLEAN
JOB
JOB
CAPITAL
CLEAN
CLEAN
JOB
JOB
CAPITAL
BUSINESSES JOBS
GROWTH GROWTH 2006-2008
BUSINESSES JOBS
GROWTH GROWTH 2006-2008
2007
2007 1998-2007 1998-2007 (thousands)
2007
2007 1998-2007 1998-2007 (thousands)
Alabama
799
7,849
2.2%
1.6%
$0
Montana
408
2,155
0.2%
12.7%
$0
Alaska
350
2,140
9.4
15.7
0
Nebraska
368
5,292
108.6
-4.9
0
Arizona
1,123
11,578
21.3
16.2
31,106
Nevada
511
3,641
28.8
26.5
19,804
Arkansas
448
4,597
7.8
3.5
22,845
New Hampshire
465
4,029
2.0
6.8
66,917
California
10,209
125,390
7.7
6.7
6,580,427
New Jersey
2,031
25,397
-9.6
-2.7
282,568
Colorado
1,778
17,008
18.2
8.2
622,401
New Mexico
577
4,815
50.1
1.9
147,913
Connecticut
857
10,147
7.0
-2.7
30,050
New York
3,323
34,363
-1.9
-2.6
209,590
Delaware
211
2,368
-2.3
-8.9
3,342
North Carolina
1,783
16,997
15.3
6.4
82,571
District of Columbia
280
5,325
18.8
-7.1
89,877
North Dakota
137
2,112
30.9
9.4
0
Florida
3,831
31,122
7.9
22.4
116,980
Ohio
2,513
35,267
7.3
-2.2
74,224
Georgia
1,827
16,222
10.8
15.7
179,686
Oklahoma
693
5,465
6.8
2.4
5,192
Hawaii
356
2,732
43.6
7.3
12,304
Oregon
1,613
19,340
50.7
7.5
70,002
Idaho
428
4,517
126.1
13.8
27,890
Pennsylvania
2,934
38,763
-6.2
-3.1
232,897
Illinois
2,176
28,395
-2.5
-2.5
108,519
Rhode Island
237
2,328
0.7
0.6
22,845
Indiana
1,268
17,298
17.9
-1.0
26,000
South Carolina
884
11,255
36.2
2.2
0
Iowa
729
7,702
26.1
3.6
149,237
South Dakota
169
1,636
93.4
4.9
0
Kansas
591
8,017
51.0
-0.3
13,275
Tennessee
1,090
15,507
18.2
2.5
16,329
Kentucky
778
9,308
10.0
3.6
0
Texas
4,802
55,646
15.5
6.7
716,894
Louisiana
995
10,641
19.5
3.0
0
Utah
579
5,199
-12.4
10.8
26,957
Maine
725
6,000
22.7
3.3
0
Vermont
311
2,161
15.3
7.4
53,747
Maryland
1,145
12,908
-2.4
1.3
323,996
Virginia
1,446
16,907
6.0
6.6
70,828
Massachusetts
1,912
26,678
4.3
-4.4
1,278,462
Washington
2,008
17,013
0.5
1.3
635,109
Michigan
1,932
22,674
10.7
-3.6
55,099
West Virginia
332
3,065
-4.1
0.7
5,741
Minnesota
1,206
19,994
11.9
1.9
49,938
Wisconsin
1,294
15,089
-5.2
3.4
46,743
Mississippi
454
3,200
24.8
3.6
30,384
Wyoming
225
1,419
56.4
14.0
6,942
Missouri
1,062
11,714
5.4
2.1
24,480
U.S. Total
68,203
770,385
9.1
3.7
12,570,110
NOTE: Venture capital values are adjusted for in ation and reported in 2008 dollars. See appendices for the complete data sets.
SOURCE: Pew Charitable Trusts, 2009, based on the National Establishment Time Series Database and data from the Cleantech GroupTM LLC;
analysis by the Pew Center on the States and Collaborative Economics
8
The Clean Energy Economy | The Pew Charitable Trusts
The Clean Energy
Economy: A Definition
and Framework
Manufacturing plants of old—the destination
pollution. “While our economic engine has
for thousands of workers and lifeblood of
for years been powered by relatively
whole communities—have been on the
inexpensive energy, there is evidence that
decline for years. In 2007, there were just
this era is coming to a close,” a National
under 14 million manufacturing jobs, but
Governors Association report noted in 2007.4
the industry has shrunk every year over
“Meanwhile, we are increasingly aware of the
the last decade. Between 1998 and 2007,
serious impacts of global climate change—and
manufacturing jobs declined by nearly 21
how America’s consumption of fossil fuels
percent, an average of 2.6 percent annually.1
is contributing to a warming Earth.” Nearly
Many companies have shut down as
half the states have joined regional initiatives
consumers turned to newer products and
aimed at reducing carbon dioxide emissions
innovations or as more profitable business
from power plants and increasing clean
models emerged in other states or countries.
energy generation. Twenty-nine states and the
This long, steady decline accelerated during
District of Columbia have adopted renewable
the past year as the recession hit, leaving
portfolio standards, which require utilities to
workers in need of jobs—and states in need
generate a certain percentage of their power—
of new industries to serve as their economic
ranging from 10 percent to 25 percent—from
engines.2 Today, a growing number of states
renewable energy sources by a target date.5 And
are looking to identify and cultivate new
19 states have established standards for energy
industries and areas of economic growth to
efficiency.6
help them better compete in the 21st century
global marketplace. The public and policy
Driven by fiscal interests and concerns
makers alike want more than a short-term fix
about energy and climate change, a growing
for the immediate fiscal crisis. They want new
number of public- and private-sector leaders
lines of business that will create jobs, generate
are seeking to expand their share of the
revenues for many years to come and help
clean energy economy: jobs, businesses and
America re-emerge as a technological leader.
investments that achieve a double bottom
line—economic growth and environmental
With three quarters of Americans describing
sustainability. This approach is not new; in
climate change as a serious problem,3 states
the late 1990s businesses and policy makers
also have been working to address the
began to recognize that consumer demand
public’s concerns about our shrinking supply
for clean products, supplies and activities
of traditional energy sources, the nation’s
represented a significant market opportunity.
overreliance on foreign oil and global warming
But the promise and priority of the clean
The Clean Energy Economy
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T H E C L E A N E N E R G Y E C O N O M Y : A D E F I N I T I O N A N D F R A M E W O R K
energy economy have risen sharply in
data to ground their policy deliberations and
response to the current economic recession
choices, and to understand where growth
and our increasing dependence on fossil fuels.
is heading. And both government and the
private sector need a clear and concrete
Through the American Recovery and
definition of this market so they can track
Reinvestment Act (ARRA), which was signed
jobs, businesses and investments aimed at
into law in February 2009, President
both economic growth and environmental
Barack Obama and Congress have pumped
sustainability and gauge the effectiveness of
substantial federal funds into cultivating the
public policy choices to support such efforts.
clean energy economy—nearly $85 billion in
direct spending and tax credits for energy-
Pew sought first to clearly define the clean
and transportation-related programs.7 But
energy economy and then count the actual
even before ARRA, a growing number of
number of jobs, businesses and investments
states, from Tennessee and Texas to Colorado,
in it. Pew’s accounting of the clean energy
Michigan and Ohio, were beginning to
economy was developed from the ground up.
capitalize on the clean energy economy’s
Our analysis is conservative relative to other
double bottom line of economic growth
studies because we count actual clean energy
and environmental sustainability.
economy businesses and jobs rather than
entire occupations (such as all jobs in
Michigan has lost jobs since 2000 as
mass transit, or all electricians).11 For
the Detroit-based auto manufacturers
example, our report counts the workers
have faltered; by March 2009, the state’s
who manufacture hybrid cars and buses,
unemployment rate was the highest in the
technicians who construct wind turbines,
country, at 12.6 percent—an increase of
electricians who install solar panels on
5 percentage points in just one year.8
homes and engineers who research fuel cell
Today, the clean energy economy is a central
technology, but it does not include all auto
component of Michigan’s recovery strategy.
manufacturers, electricians, technicians and
Part of Governor Jennifer Granholm’s “No
engineers. In addition, we focus exclusively
Worker Left Behind” program aims to create
on producers and suppliers in the clean
clean energy jobs for Michigan residents,
energy economy. We do not count jobs
and she tasked Skip Pruss, director of the
that use these products and services—for
state’s Department of Energy, Labor and
example, jobs within utilities responsible for
Economic Growth, with making that goal
purchasing energy monitoring equipment or
a reality.9 “Every state wants to be a leader
the mass transit operations that buy hybrid
in the area for clean energy generation and
buses—because data limitations prevented the
energy efficiency,” said Pruss. “There’s keen
disaggregation of specific jobs within these
competition; it’s very dynamic. But there’s
types of companies.
enough opportunity for everyone to really
improve and diversify their economies.”10
Although our numbers are conservative, our
report provides the most precise depiction
Given the burgeoning interest in the clean
to date of the clean energy economy in the
energy economy, policy makers, business
United States.12
leaders and the public need credible, reliable
10
The Clean Energy Economy | The Pew Charitable Trusts
T H E C L E A N E N E R G Y E C O N O M Y : A D E F I N I T I O N A N D F R A M E W O R K
The Clean Energy Economy, Defined
This framework (Exhibit 2) was designed to
describe what the clean energy economy
Based on significant research and input from
looks like today while leaving room for
experts in the field, including the advisory
inevitable future changes. Technology,
panel convened to help guide this study, Pew
scientific research, market forces and public
has developed the following definition:
policy will continue to drive innovation and
A clean energy economy generates jobs, businesses
competition. A company that supplies natural
and investments while expanding clean energy
gas engines for buses, for instance, may supply
production, increasing energy efficiency, reducing
a fundamentally different type of engine a
greenhouse gas emissions, waste and pollution,
decade from now. But while specific jobs and
and conserving water and other natural resources.
businesses will change, the five categories that
make up the clean energy economy will not.
The clean energy economy comprises five
Our framework provides a clear, practical
categories: (1) Clean Energy; (2) Energy
and consistent tool for federal, state and local
Efficiency; (3) Environmentally Friendly
policy makers and the private sector to track
Production; (4) Conservation and Pollution
investments, job and business creation, and
Mitigation; and (5) Training and Support.
growth over time.
Pew’s researchers organized these five
categories from 16 economic sectors (see
Appendix A for a complete list).
EXHIBIT 2
THE CLEAN ENERGY ECONOMY—A DEFINITION
The clean energy economy generates jobs, businesses and investments while expanding clean energy production, increasing energy
e ciency, reducing greenhouse gas emissions, waste and pollution, and conserving water and other natural resources.
The clean energy economy comprises ve categories:
CLEAN
ENERGY
ENVIRONMENTALLY
CONSERVATION
ENERGY
EFFICIENCY
FRIENDLY
AND POLLUTION
PRODUCTION
MITIGATION
Building
Reducing
Improving
Recycling
sustainable energy
and managing
our products
and remediating
for the future
our energy demand
and processes
waste
TRAINING AND SUPPORT Helping develop our clean energy economy
Although speci c jobs and businesses will change over time, the categories themselves will not—providing a clear, practical and
consistent framework for federal, state and local policy makers and the private sector to track investments, job and business creation, and
growth over time.
SOURCE: Pew Charitable Trusts, 2009.
The Clean Energy Economy
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T H E C L E A N E N E R G Y E C O N O M Y : A D E F I N I T I O N A N D F R A M E W O R K
The Five Categories of the Clean Energy
Energy Efficiency. These are jobs and
Economy
businesses that help Americans reduce the
amount of energy we use, whether to run a
Clean Energy. These are jobs, businesses and
manufacturing plant or heat and cool an office
investments that produce, transmit and store
building or home. Expanding the use of clean,
clean, renewable power from solar, wind, low-
renewable energy sources will take time,
impact hydro, hydrogen fuel cells, marine and
so improved energy efficiency helps reduce
tidal, geothermal13 and small-scale biopower14
our use of fossil fuels in the short term and
energy sources.
use less energy—from both fossil fuels and
This category’s jobs, businesses and
renewable sources—in the long term.
investments meet a stringent set of
Examples of jobs: Engineers develop energy-
requirements. Clean energy must have a
efficient lighting, meters, software programs
positive net energy yield, reduce greenhouse
and other products that help curb and
gas emissions compared with other sources
monitor energy usage, while electricians and
of energy, and be produced and distributed
others install them in homes, businesses and
in a sustainable and safe manner. Nuclear
government buildings.
power is not included in this category because
of significant, ongoing questions about how
Environmentally Friendly Production. These are
and where to safely store its waste; a system
jobs, businesses and investments that seek to
to safely dispose of nuclear waste has not
mitigate the harmful environmental impacts
been implemented anywhere in the world
of existing products and develop and supply
(see Appendix F).15 Additionally, we do not
alternatives that require less energy and emit
include the jobs and businesses associated
fewer greenhouse gases. Environmentally
with the production and distribution of liquid
friendly production comprises six areas:
biofuels such as corn-based ethanol in the
transportation, manufacturing, construction,
Clean Energy category because they do not
agriculture, energy production and materials.
meet its requirements.16 As explained in more
detail below, these jobs and businesses are
Examples of jobs:
included in the Environmentally Friendly
l Transportation includes jobs that
Production category instead.
produce hybrid diesel buses, traffic
monitoring software and liquid
Examples of jobs: Electricians, electrical
biofuels. This includes only facilities
engineers and plumbers help install new
where feedstocks are distilled into
energy systems, while plant operators ensure
biofuels and centers that distribute
that renewable sources such as wind and solar
them—i.e., the biofuels infrastructure;
are being converted to electricity. Mechanics
it does not include agricultural jobs
rebuild ailing energy infrastructure by
that supply feedstocks to produce
installing sensors and controls that monitor
liquid biofuels.17 We include
and distribute clean energy more effectively
biofuels infrastructure because
(i.e., making the grid smarter). Researchers
the commercialization of second-
and technicians perfect and implement battery
generation biofuels from the cellulose
technologies that improve how we store and
in plants and waste holds the potential
distribute clean energy.
to produce an energy source that does
12
The Clean Energy Economy | The Pew Charitable Trusts
T H E C L E A N E N E R G Y E C O N O M Y : A D E F I N I T I O N A N D F R A M E W O R K
not divert substantial amounts of land
catalysts to break down wastes and
from growing food or damage the
reduce toxins naturally.
environment.
Conservation and Pollution Mitigation. These
l Manufacturing includes chemists
are jobs, businesses and investments that
who produce environmentally sound
enable the United States to manage water and
packaging, equipment and surface
other finite natural resources more effectively
cleaning products that are less
and to mitigate emissions of greenhouse gases
caustic than traditional products.
and other pollutants that result from the
continued use of fossil fuels.21 Also included
l Construction includes workers who
are efforts to recycle materials used in
produce and install green building
production processes, which can save energy.
material such as alternative cement
For example, recovering aluminum from scrap
and manufactured wood products
(from manufacturing plants as well as from
made from scraps, and consultants
aluminum products) to refine and produce
who provide green building design
aluminum a second time uses less than 5
and construction services.
percent of the energy required to produce
l Agriculture includes plumbers and
primary aluminum.22
technicians who install smart irrigation
Examples of jobs: Trained workers
systems, as well as chemists who
safely remediate hazardous materials from
design alternative pest controls and
industrial sites; scientists and technicians
consultants who provide agricultural
develop, install and supply products to
sustainability planning.
capture and treat noxious greenhouse gases
l Energy production includes jobs that
and pollutants; machinists and system
design and apply cleaner technologies
operators treat water and waste; and
to coal such as gasification, pyrolysis,
environmental consultants help companies
and carbon capture and sequestration
and governments improve emissions
(CCS). Coal provides nearly 50
monitoring, water conservation and recycling.
percent of America’s electricity,18 but
Training and Support. These are jobs,
it also produces about 80 percent of
businesses and investments that provide
the electricity sector’s carbon dioxide
specialized services to the other four categories
emissions.19 CCS technology is still
of the clean energy economy.
under development, but our definition
includes efforts that seek to reduce
Examples of jobs: Financial analysts
the adverse impacts of coal in the
and consultants specialize in clean tech
near future while the country works
investments, lawyers and paralegals provide
to develop clean, renewable energy
legal services, researchers and engineers
sources.20
develop new energy generation technologies,
and vocational teachers train new workers for
l Materials includes product
the clean energy economy.
designers and engineers who develop
biodegradable products and chemical
engineers who research new chemical
The Clean Energy Economy
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T H E C L E A N E N E R G Y E C O N O M Y : A D E F I N I T I O N A N D F R A M E W O R K
Methodology
As noted earlier, there is no straightforward
classification of jobs and businesses in the
This report counts jobs, companies, patent
clean energy economy. To compensate for
registrations and venture capital investments
this, Collaborative Economics Inc., Pew’s
that are part of the clean energy economy,
research partner, created a new database to
as Pew defines it, across all 50 states and
track businesses in the clean energy economy
the District of Columbia. Because a perfect
and, in combination with NETS, identified
data set with which to count these jobs and
companies in the clean energy economy
businesses does not exist, and obtaining an
across the nation. The research team designed
accurate count of this emerging economic
a Web search engine to find company Web
activity is difficult, Pew used data that provide
sites and to verify that these businesses were
detailed information on individual companies.
still actively engaged in the clean energy
As a first step, Pew’s researchers identified
economy, based on our definition. Then a
companies receiving clean technology
team of analysts manually checked the validity
venture capital. Next, we used the National
of the 50-state data. Given the methodology
Establishment Time Series (NETS)
and standards employed, our count of
database—a time series database of U.S.
businesses and jobs is probably conservative.
public and private establishments based on
Venture capital investment data were provided
data from Dun & Bradstreet—to identify
by the Cleantech Group, which tracked
similar and related companies. This approach
investments by industry category. We obtained
enabled us to capture the different sets of
new patent registrations, based on U.S. Patent
activities that result in products and services
and Trade Office records, with the help of
produced and supplied by the clean energy
intellectual property experts at 1790 Analytics.
economy, creating the most comprehensive
Both patent and venture capital data were
and accurate count of jobs yet available. For
collected for the period from 1999 to 2008.
the purposes of this analysis, we studied jobs
and businesses between 1998 and 2007.
See Appendix B for a more detailed
description of our methodology.
14
The Clean Energy Economy | The Pew Charitable Trusts
The Clean Energy Economy:
National Numbers
Businesses and Jobs
Workers from all walks of life and diverse
professional backgrounds are the engine of the
Driven by growing consumer demand, public
clean energy economy. Plumbers, machinists,
policy decisions and public- and private-sector
scientists, engineers, bankers and marketing
investments, America’s clean energy economy
consultants all contribute to it—with annual
today comprises more than three quarters of a
incomes ranging from approximately $21,000
million jobs. By 2007, the last year for which
to $111,000.28 “The range of jobs will be
data are available, 68,203 businesses across
from entry level to high level and they will all
all 50 states and the District of Columbia
evolve as the industry evolves,” Kathy Krepcio,
had created 770,385 jobs in the clean energy
executive director of the John J. Heldrich
economy. While this represents half a percent
Center for Workforce Development at Rutgers
of all jobs in the United States, Pew’s research
University, told members of Congress in
shows that between 1998 and 2007, jobs
March 2009.29
in the clean energy economy grew by 9.1
percent, while total jobs grew by just 3.7
One national company that illustrates the
percent. And although we expect the national
potential of the clean energy economy is
recession to have caused a decline in jobs that
Hemlock Semiconductor,30 the world’s largest
are part of the clean energy economy in 2008,
producer of polysilicon, a key material in
experts predict it will be less severe than the
photovoltaic devices such as solar panels. For
drop in overall U.S. jobs.23
decades, the 48-year-old company primarily
produced semiconductors, but solar panels
To put these numbers in perspective,
have taken off, and Hemlock with them. The
consider the following. Biotechnology, which
company, based in Hemlock, Michigan, has
has developed applications for agriculture,
expanded rapidly during the past five years—
consumer products, the environment
doubling from 600 to 1,200 employees.
and health care and has been the focus
In December 2008, Hemlock announced
of significant public policy24 and private
a $1.2 billion investment to launch a new
investment,25 employed fewer than 200,000
Clarksville, Tennessee, plant that will employ
workers, or about a tenth of a percent of total
900 people once it opens in 2012. Tennessee
U.S. jobs in 2007.26 And the well-established
Governor Phil Bredesen and the Tennessee
traditional energy sector—including utilities,
Department of Economic and Community
coal mining and oil and gas extraction,
Development created an attractive package
industries that have received significant
to lure Hemlock, including tax incentives, a
government investment—comprised about
shovel-ready location, and sound roads and
1.27 million workers in 2007, or about
other transit to ship materials in and products
1 percent of total employment.27
out. The package also featured a partnership
The Clean Energy Economy
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T H E C L E A N E N E R G Y E C O N O M Y : N A T I O N A L N U M B E R S
with Austin Peay State University, which
Where the Jobs Are Now, and Where They
committed to offering a program to train
Are Heading
skilled manufacturing workers in meeting
the specific needs of a company such as
The Jobs of Today: Conservation and Pollution
Hemlock.31
Mitigation. In 2007, 65 percent—501,551—
of all jobs in the clean energy economy
“As the solar industry grows domestically
were in the category of Conservation and
and internationally, we’d expect both of our
Pollution Mitigation, which includes the
sites [in Michigan and Tennessee] to continue
recycling industry (Exhibit 3). These jobs are
to grow,” said Jarrod Erpelding, a company
spread across all 50 states and the District
spokesman. “We have this tremendous
of Columbia. The industries and businesses
operation set up to serve the world’s solar
represented in this sector are capital
electricity generation needs. But solar
intensive—requiring large investments in
comprises less than 1 percent of the world’s
plants and equipment—and they respond to
total electricity generation. We’re as large as
the demand to recycle and reuse water and
we are now to serve this very small fraction.
other natural resources more efficiently. The
We are working as hard as we can to grow
dominance of this sector to date makes sense,
the domestic market for solar energy.”
given recognition among consumers, policy
makers and business leaders of the need to
recycle waste, conserve water and mitigate
emissions of greenhouse gases and other
pollutants.32
EXHIBIT 3
THE U.S. CLEAN ENERGY ECONOMY:
Jobs of Today and Jobs of Tomorrow
65 percent of today’s clean energy economy jobs are in the category of Conservation and Pollution Mitigation. Growing recognition among
the public, policy makers and business leaders of the need to recycle waste, conserve water and work to mitigate emissions of greenhouse
gases and other pollutants has led to growth in this category. But growth trends paint a di erent picture for the future of the clean
energy economy. Jobs in Environmentally Friendly Production, Clean Energy and Energy E ciency are growing much faster in response to
new market demands.
JOBS IN THE
Environmentally
Training
Environmentally
GROWTH OF JOBS
Friendly Production
CLEAN ENERGY
and Support
Friendly
IN THE CLEAN
7.0%
Production
ECONOMY,
6.8%
ENERGY ECONOMY,
+67%
2007
1998 TO 2007
Energy E ciency
9.5%
Clean
Conservation
Energy
Energy
and Pollution
+23%
E ciency
Clean Energy
Mitigation
Conservation
+18%
11.6%
65.1%
and
Training
Pollution
and
Mitigation
Support
+3%
-0.3%
SOURCE: Pew Charitable Trusts, 2009, based on the National Establishment Time Series Database; analysis by Pew Center on the States and Collaborative Economics.
16
The Clean Energy Economy | The Pew Charitable Trusts
T H E C L E A N E N E R G Y E C O N O M Y : N A T I O N A L N U M B E R S
A CONSERVATION AND POLLUTION MITIGATION FIRM:
RECYCLEBANK
To be cost effective for municipalities, recycling must occur
and salespeople. The staff does not include truck drivers,
on a large enough scale to yield savings at the landfill.
garbage collectors or recycling plant workers because the
company tries to help existing recycling operations stay
RecycleBank, which operates in 18 states and 100 cities
in business. Once a deal is signed, RecycleBank retrofits
and towns, encourages recycling while helping consumers
existing trucks with mechanical arms that read the chips
and local governments save money.33 The company
in the new bins. Upfront costs are paid by RecycleBank in
collects recyclable materials in bins equipped with
return for an agreement to share the long-term savings
computer chips that record the amount recycled and send
with the city.36
the information to the RecycleBank’s Web site, where it
is converted into points for the bin owner’s account. The
Some communities are not traditionally recyclers—
customer can log into the account and convert points to
especially low-income areas where it is not easy for
coupons for stores such as Target and brands such as Kraft.
individuals without the means to invest in solar panels,
electric cars and the like. But RecycleBank CEO Ron Gonen
As a result of these incentives, areas that use the program
said the company has done well in these neighborhoods.
have seen recycling increase by 50 percent or more along
“We’ve been able to come in on a mass scale and say we’re
with significant savings at the landfill, which often charge
going to help you become part of this environmental
per ton.34 Wilmington, Delaware, for instance, cut its $2.1
movement today, and we’re going to reward you for it,”
million annual waste removal tab by 40 percent.35
Gonen said. “If you give people the opportunity, they’re
RecycleBank’s roughly 105 employees include operations
going to take advantage of it.”37
managers, technology specialists, marketing professionals
The Jobs of Tomorrow: Clean Energy; Energy
Clean Energy. The Clean Energy sector
Efficiency; and Environmentally Friendly
contains a variety of different workers,
Production. While the Conservation and
from electricians and engineers to plumbers,
Pollution Mitigation sector contains the
who help create, distribute and store clean,
majority of today’s jobs and businesses in the
renewable energy. In 2007, this sector
clean energy economy, Pew’s data indicate
accounted for about 89,000 jobs. While
that three different categories represent the
this category is small relative to the more
jobs of tomorrow: Clean Energy; Energy
established and geographically dispersed
Efficiency; and Environmentally Friendly
Conservation and Pollution Mitigation sector,
Production. Together, these categories make
it is growing rapidly and promises to form
up more than one in four jobs in today’s clean
the backbone of tomorrow’s clean energy
energy economy—and they are growing at a
economy. Investors see great potential in this
fast clip. They represent businesses and jobs
burgeoning sector. As explained below, it
that are looking ahead to develop renewable,
attracted the vast majority of clean venture
efficient energy sources and technologies to
capital between 2006 and 2008. The jobs in
meet the demands of a carbon-constrained
this category are located in three main areas:
economy (Exhibit 3).
energy generation, transmission and storage.
The Clean Energy Economy
17
T H E C L E A N E N E R G Y E C O N O M Y : N A T I O N A L N U M B E R S
Nearly six out of 10 jobs in this sector fall
EXHIBIT 4
specifically in the area of energy generation,
SOLAR AND WIND ENERGY
which includes jobs responsible for producing
clean forms of energy such as wind, solar,
Nearly six out of 10 jobs in the category of Clean Energy are
geothermal, low-impact hydro, hydrogen,
responsible for the generation (versus transmission or storage)
of clean and renewable energy. Jobs in solar energy generation
marine and tidal, and small-scale biopower.
account for 62.5 percent of all energy generation jobs. Jobs in
Jobs responsible for solar power generation
wind energy generation are second overall, making up 9.7
dominate this subgroup: 62.5 percent of
percent. Jobs in wind and solar are expanding at promising
all energy generation jobs in 2007 were in
rates—wind power jobs grew 23.5 percent between 1998 and
the solar industry. Jobs in wind power were
2007, outpacing solar jobs, which grew 19.1 percent during the
second overall, making up 9.7 percent of
same time period.
energy generation jobs in 2007, but they grew
ENERGY
All other 14,623
more rapidly—by 23.5 percent between 1998
Solar
GENERATION
energy
and 2007, compared to 19.1 percent growth
JOBS IN 2007
32,782
Wind energy 5,068
for solar power jobs during the same period
(Exhibit 4).
CHANGE
IN ENERGY
Wind energy
generation
Energy transmission jobs, focused on building
GENERATION
Solar energy
jobs
tomorrow’s energy delivery systems, represent
JOBS,
+23.5%
1998-2007
generation
one of every nine jobs in the overall Clean
jobs
+19.1%
Energy sector. GridPoint, a Virginia-based
technology firm with 130 employees, is among
SOURCE: Pew Charitable
Trusts, 2009, based on the
the businesses seeking to make those systems
National Establishment
Time Series Database;
smarter. Much of America’s electricity grid
analysis by Pew Center on
the States and
currently sits unused except at peak times,
Collaborative Economics.
when the system exceeds capacity. “As we get
closer to the consumer, we don’t have any
ability to measure and control the electricity
real time, allowing consumers and the utility
at that level,” said Steven Hauser, head of
to better understand patterns of energy use.
EXHIBIT 5
GridPoint’s market development.38 As a result,
Providers can then price energy accordingly,
CLEAN TECHNOLOGY PATENTS
the grid is not very smart. Better consumption
and consumers can reduce their energy
patterns and pricing signals between
consumption during the most expensive
During the past 10 years, clean technology patents have been
registered across eight di erent areas of technology
producers and end users could change that
hours. “It is really important that states
development. A majority of all clean technology patents have
dynamic, making the grid work optimally and
develop their own smart grid plans—and
been registered in energy storage technologies, including
provide better feedback to end users. In March
better green energy plans for that matter—to
batteries, fuel cells and hybrid systems.
2008, GridPoint began collaborating with the
encourage investment at the
CLEAN
Energy Infrastructure 4.3%
City of Boulder, Colorado, and other energy
state level,” said Hauser.
TECHNOLOGY
Geothermal 0.8%
companies to make Boulder a smart grid
Wind
The remaining 31 percent of jobs in the Clean
PATENTS,
5.0%
Hydro 0.8%
laboratory. Smart meters have been installed
1999
Energy sector concentrate on developing
in about 15,000 homes—ultimately, about
to 2008
Solar
and implementing new and more effective
8.7%
50,000 will have them—and GridPoint has
energy storage technologies, such as those
installed software and other tracking devices
that capture excess renewable energy supply
to monitor and control energy consumption in
and release it on demand. Renewable energy
Hybrid Systems
Batteries
8.2%
46.6%
SOURCE:
Pew Charitable Trusts,
Fuel Cells
2009, based on data
25.6%
from 1790 Analytics;
18
The Clean Energy Economy | The Pew Charitable Trusts
analysis by Pew Center
on the States and
Collaborative
Economics.
T H E C L E A N E N E R G Y E C O N O M Y : N A T I O N A L N U M B E R S
A CLEAN ENERGY FIRM:
GAMESA
Gamesa, a Spanish-owned wind turbine manufacturer,
legacy of the once-mighty steel industry.39 The state’s
arrived in Pennsylvania in early 2005. Its first plant was
renewable energy portfolio standard—which requires
a former U.S. Steel factory in Ebensburg, outside
electricity providers to supply at least a certain amount
Pittsburgh—and some of its first hires were former steel
of power from renewable sources—was set earlier and
workers from the old plant. Within a few years, Gamesa
more aggressively than similar policies in other states, an
opened a second plant in Fairless Hills and a Philadelphia
encouraging signal to Gamesa that there would be
development office. The company currently employs
local demand for its product, Peck said. In addition,
about 1,000 Pennsylvanians.
Pennsylvania is situated among many other states with
large energy demands, limited wind resources or land
Gamesa spokesperson Michael Peck said the company
for wind farm development and renewable portfolio
was drawn to Pennsylvania by the state’s bipartisan
standards, he said. “We’ve had an opportunity through
legislative commitment to renewable energy, its proximity
the challenge that’s facing our environment to take this
to large and accessible energy markets, and its native
manufacturing DNA and attain world leadership in green
resources—wind, and a large, skilled workforce, the
energy and manufacturing,” Peck said.
sources such as wind and solar power are
demand for more efficient products and
intermittent, so finding ways to store and
services.43 In 2007 alone, Americans
transmit energy when the sun is not shining
purchased more than 500 million Energy Star®
and wind is not blowing is critical.40
products—labeled as energy efficient by the
U.S. Department of Energy and Environmental
Energy Efficiency. As U.S. Energy Secretary
Protection Agency—across 50 categories, up
Steven Chu has said, “maximizing energy
67 percent from the previous year.44
efficiency and decreasing energy use will
remain the lowest hanging fruit of the next
Increased demand for energy-efficient
several decades.”41 In 2007, this sector
products and services has spurred job growth
represented approximately 73,000 jobs in
for workers who make and distribute software
the clean energy economy. The jobs and
and meters to monitor energy consumption
businesses in the Energy Efficiency category
and who manufacture and install efficient
work hand-in-hand with those in the Clean
glass and lighting, along with service-related
Energy sector. Energy-efficient products and
jobs that help companies and individuals
services use the current supply of energy more
improve home or business energy use. Many
effectively, decreasing Americans’ consumption
of these jobs are white-collar positions,
of carbon-emitting energy while clean,
including energy management and energy
renewable energy sources are developed that
consulting services. The two groups are closely
can meet a greater share of U.S. energy needs.42
connected; the demand for energy-efficient
Energy efficiency is one of the most cost-
products drives a corresponding demand for
effective ways of reducing the consumption
energy management and consulting services
of carbon-emitting energy supplies, and U.S.
and related jobs.
consumers have responded by increasing
The Clean Energy Economy
19
T H E C L E A N E N E R G Y E C O N O M Y : N A T I O N A L N U M B E R S
AN ENERGY EFFICIENCY FIRM:
HONEYWELL
Honeywel International, based in Morris Township, New
95 jobs, according to the National Association of Energy
Jersey, and inventor of the iconic round thermostat found in
Services Companies.47 The audit process often leads to a
homes around the world, has a $38 bil ion portfolio—and
combination of bringing in renewable energy sources and
nearly half of it is tied to energy ef iciency products and
tightening up the ef iciency of sources old and new. For
services, according to Kent Anson, vice president of Global
example, a Honeywel contract launched last fal with the
Energy and Environment for Honeywel Building Solutions.45
Housing Authority of the City of Pittsburgh is expected
Sales in Honeywel ’s Automation and Control Solutions
to save the city $3.2 mil ion annual y in utility costs by
division, which includes the Building Solutions section
switching communities to geothermal HVAC systems
and many energy ef iciency products such as sensors and
(systems that store air from the earth’s natural heating
switches for lights and other appliances, jumped at a rate
and cooling processes), sealing buildings to reduce loss
twice that of total company sales in 2008.46
of hot and cold air and retrofitting lights and appliances
with more ef icient models.48 The improvements also are
In a typical contract, Honeywel engineers audit building
expected to cut annual carbon emissions by nearly 16
systems for potential energy ef iciency improvements and
mil ion pounds—equivalent to removing more than 1,300
oversee comprehensive retrofits that can save thousands
vehicles from the road.49 “By developing projects that have
of dol ars and tons of emissions and create or sustain a
environmental and financial drivers, we wil see the type
range of jobs for Honeywel engineers, local subcontractors
of widespread adoption that wil have a lasting impact on
and manufacturing workers in supplier companies, said
greenhouse gas emissions,” said Anson.50
Anson. Al told, a $10 mil ion contract can create or sustain
AN ENERGY EFFICIENCY FIRM:
JOHNSON CONTROLS
Johnson Controls, a Fortune 500 auto parts manufacturer
and $38 billion in sales in 2008.52 “We are benefiting from
headquartered in Milwaukee, Wisconsin, is one of the
the expansion of the public’s general interest in energy
country’s fastest-growing companies in the clean energy
efficiency and its willingness to invest,” Clark-Holmes said.
economy and is a recognized leader in energy-efficient
building solutions.51 In fact, as Joy Clark-Holmes, the
Johnson Controls recently launched a campaign to educate
company’s director of Local Government and Market
consumers about energy efficiency and sustainability.
Solutions explained, growth in its building efficiency
“‘Green’ is a marketing word for what people feel is doing
business is outpacing its other divisions, accounting for
the right thing,” said Clark-Holmes. “If you truly want to
more than one third of the company’s 140,000 employees
become green you have to become energy efficient.”
20
The Clean Energy Economy | The Pew Charitable Trusts
T H E C L E A N E N E R G Y E C O N O M Y : N A T I O N A L N U M B E R S
AN ENERGY EFFICIENCY FIRM:
AUSTIN ENERGY
Austin Energy53 has been actively promoting conservation
fund, every investment the group makes of more than
since 1982, “before it was on everyone’s radar,” according
$50,000, such as the purchase of its $2.3 billion biomass
to spokesman Ed Clark. Its Power Saver program has
plant, must be reviewed and approved by the Austin City
encouraged customers to make their homes and
Council before it can be implemented. The short-term
businesses more energy efficient through rebates and
costs of moving to renewable energy sources can cause
low-interest loans for improvements from weather
concerns for constituents—but energy efficiency and
stripping to solar panel installation. Austin Energy works
ultimate cost savings to consumers and the city benefit
with 80 independent local heating and air-conditioning
everyone, said Clark. The city council recently passed a
services to make the improvements in the Austin, Texas,
new Energy Conservation Audit and Disclosure Ordinance
metropolitan area. In addition, the utility company has a
that will go into effect June 1, 2009, requiring energy
two-year-old partnership with Austin Community College,
audits of all homes more than 10 years old before they
in which students intern with Austin Energy and other
are sold, and disclosure of the results to prospective
area utilities in preparation for post-graduate jobs.
buyers. Clark predicted that in addition to increasing the
demand for efficiency improvement products and services,
Austin Energy is a city department. Because it is publicly
the ordinance will create a need for about 100 certified
owned and its profits become part of the city’s general
inspectors to perform the audits.54
AN ENVIRONMENTALLY FRIENDLY PRODUCTION FIRM:
PROJECT FROG
San Francisco, California-based Project FROG (Flexible
different sites and user needs. For its first commercial
Response to Ongoing Growth)55 provides customizable,
projects, Project FROG targeted American school districts.
prefabricated “smart buildings” that incorporate science,
To date, the company has constructed buildings across
technology and human behavior at as much as 40 percent
two campuses, and it has three more campuses under
less than the cost of traditional construction projects,
construction that will open this fall. Project FROG employs
according to company founder Mark Miller.56
a staff of 20 and works with 10 full-time consultants from
the architecture, energy, manufacturing and engineering
Three years ago, Miller and his colleagues at a San
fields. To maintain the brand’s low-cost, sustainable ethos,
Francisco architecture firm established Project FROG with
the company buys its materials—primarily steel and
two goals: to reduce money, time and materials associated
large panels that become walls—from local suppliers,
with traditional construction and to create efficient,
and it favors producers that have strong efficiency
affordable and environmentally neutral buildings.57 With
and sustainability practices in place, said Adam Tibbs,
the support of venture capital firms, they developed
president of Project FROG.
prefabricated components to create buildings suited to
The Clean Energy Economy
21
T H E C L E A N E N E R G Y E C O N O M Y : N A T I O N A L N U M B E R S
A TRAINING AND SUPPORT FIRM:
MANKO, GOLD, KATCHER & FOX
Pennsylvania’s Land Recycling Program, which encourages
determine whether their projects qualify for environment-
owners of brownfield sites to clean them up by providing
related funding through ARRA and other programs. The
uniform standards, liability relief, standardized reviews
federal stimulus has boosted demand for environmental
and financial assistance, is a major source of business
legal services as companies and municipalities jostle for
for the law firm of Manko, Gold, Katcher & Fox. The firm,
funding with “green” stipulations attached to it. Managing
which is based in Pennsylvania but represents clients
Partner Robert Fox predicts the market for environmental
in every state and all over the world, provides legal
lawyers is “going to be much hotter over the next 10 years
services related to the Land Recycling Program and other
than it was over the last.”58 Manko Gold’s staff includes 28
environmental policies. For example, the firm’s lawyers
lawyers and two full-time technical consultants who are
counsel businesses and municipalities on compliance
experienced engineers.
with environmental regulations, and they help clients
Environmentally Friendly Production. Ten
Employment in this area peaked in 2002 and
years ago, relatively few jobs focused on
declined during the next three years, but it
supplying alternative products and services,
has been on the rise again since 2006. Despite
such as environmentally friendly construction
its small size and slow growth, the skills and
materials and compressed natural gas bus
specialized services of the jobs in this category
engines, aimed at reducing carbon emissions
are vital to the other four sectors of the clean
and conserving natural resources. In 2007, the
energy economy. Teachers train plumbers and
Environmentally Friendly Production sector
electricians to install clean energy systems,
comprised 53,700 jobs—7 percent of all jobs
researchers develop new energy-generating
in the clean energy economy—but that share
technologies, and legal and business firms
reflects growth of 67 percent during the past
consult with companies to ensure that their
decade, driven by the transition Americans
products and services thrive in the growing
are making toward more environmentally
clean energy economy.
sustainable products and practices. Products
traditionally made from derivatives of fossil
Patents and Venture Capital Investments
fuels are now being produced from organic
materials such as complex sugars and starches;
The clean energy economy is still young. As
the production of these bioproducts has
Pew’s data show, jobs and businesses in the
increased and will continue to grow as the
clean energy economy have multiplied rapidly
demand for fossil fuel replacements grows.
during the past decade—yet the numbers
reflect early efforts by investors, entrepreneurs,
Training and Support. In 2007, there were
researchers and policy makers. “Clean tech is
more than 50,000 jobs in the Training and
where IT was 30 years ago and biotech was 20
Support sector, the only category in the clean
years ago; we’re way earlier in the innovation
energy economy that experienced a negative
cycle,” said David Prend, managing general
annual growth rate between 1998 and 2007.
22
The Clean Energy Economy | The Pew Charitable Trusts
EXHIBIT 4
SOLAR AND WIND ENERGY
Nearly six out of 10 jobs in the category of Clean Energy are
responsible for the generation (versus transmission or storage)
of clean and renewable energy. Jobs in solar energy generation
account for 62.5 percent of all energy generation jobs. Jobs in
wind energy generation are second overall, making up 9.7
percent. Jobs in wind and solar are expanding at promising
rates—wind power jobs grew 23.5 percent between 1998 and
2007, outpacing solar jobs, which grew 19.1 percent during the
same time period.
ENERGY
All other 14,623
Solar
GENERATION
energy
JOBS IN 2007
32,782
Wind energy 5,068
CHANGE
IN ENERGY
Wind energy
GENERATION
generation
jobs
JOBS,
Solar energy
+23.5%
1998-2007
generation
jobs
+19.1%
SOURCE: Pew Charitable
Trusts, 2009, based on the
National Establishment
Time Series Database;
analysis by Pew Center on
the States and
Collaborative Economics.
T H E C L E A N E N E R G Y E C O N O M Y : N A T I O N A L N U M B E R S
EXHIBIT 5
Patents
CLEAN TECHNOLOGY PATENTS
Patent registration statistics point to the types
During the past 10 years, clean technology patents have been
of technologies that may be introduced into
registered across eight di erent areas of technology
the market in the coming years (Exhibit 5).
development. A majority of all clean technology patents have
Registering a patent to protect and control
been registered in energy storage technologies, including
the technology is one of the most important
batteries, fuel cells and hybrid systems.
early steps in bringing an innovation to
CLEAN
Energy Infrastructure 4.3%
market.60 Patents are particularly important
TECHNOLOGY
Geothermal 0.8%
Wind
for expensive energy generation and advanced
PATENTS,
5.0%
Hydro 0.8%
energy storage technologies. “Due to large,
1999
to 2008
Solar
upfront capital requirements, dependable
8.7%
patent protection is an absolute necessity for
the development and commercialization of
the job-creating technologies and industries
Hybrid Systems
Batteries
of the future,” said William Klehm, president
8.2%
46.6%
and CEO of Fallbrook Technologies, which
designs and manufactures drivetrains for bikes
SOURCE:
Pew Charitable Trusts,
Fuel Cells
and light electric vehicles.61 Patents are not
2009, based on data
25.6%
from 1790 Analytics;
only for entrepreneurs who are building a
analysis by Pew Center
on the States and
Collaborative
new company around new products; they also
Economics.
enable established businesses to advance their
partner at RockPort Capital and director of the
National Venture Capital Association. “We’re
EXHIBIT 6
just now starting to see the most exciting,
ENERGY STORAGE PATENTS
true innovation. It has taken time to attract
During the past 10 years, patents for energy storage technologies
have accounted for a majority of all clean technology patent
entrepreneurs and scientists. That’s all just
registrations. The types of energy storage patents have shifted
starting to hit its stride, with more game-
over time. Traditional battery technologies have been replaced in
changing opportunities.”59
recent years with growth in fuel cells and hybrid systems.
Today’s research and venture capital spending
TRENDS IN ENERGY STORAGE PATENTS, 1999-2008
will generate tomorrow’s clean energy
600
opportunities. Innovation drives job growth:
Batteries
New companies can form around a clean
500
–33%
technology, and more established firms can
Fuel Cells
400
respond to new market demands and expand
+96%
their range of products and services. Pew
300
Hybrid
took a closer look at patent registrations and
Systems
200
venture capital investments to get a preview of
+147%
where the clean energy economy is headed.
100
0 ’00 ’02 ’04 ’06 ’08 ’00 ’02 ’04 ’06 ’08 ’00 ’02 ’04 ’06 ’08
SOURCE: Pew Charitable Trusts, 2009, based on data from 1790 Analytics; analysis by Pew
Center on the States and Collaborative Economics.
EXHIBIT 7
The Clean Energy Economy
WIND AND SOLAR PATENTS
23
Patents in energy generation—solar, wind, hydro and
geothermal—have accounted for less than a fth of all clean
technology patents registered in the past 10 years. Patents for
solar technologies have historically dominated, but recently an
increasing number of patents have been registered for wind
energy technologies.
GROWTH OF WIND AND SOLAR PATENTS, 1999-2008
100
Solar energy
Wind energy
–15%
80
+155%
60
40
20
0 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08
SOURCE: Pew Charitable Trusts, 2009, based on data from 1790 Analytics; analysis by Pew
Center on the States and Collaborative Economics.
EXHIBIT 6
ENERGY STORAGE PATENTS
During the past 10 years, patents for energy storage technologies
have accounted for a majority of all clean technology patent
registrations. The types of energy storage patents have shifted
over time. Traditional battery technologies have been replaced in
recent years with growth in fuel cells and hybrid systems.
TRENDS IN ENERGY STORAGE PATENTS, 1999-2008
600
Batteries
500
–33%
Fuel Cells
400
+96%
300
Hybrid
Systems
200
+147%
100
0 ’00 ’02 ’04 ’06 ’08 ’00 ’02 ’04 ’06 ’08 ’00 ’02 ’04 ’06 ’08
SOURCE: Pew Charitable Trusts, 2009, based on data from 1790 Analytics; analysis by Pew
T H E C L E A N
Center on the States and Collaborative Economics. ENERGY ECONOMY: NATIONAL NUMBERS
hydro technology patents have accounted
EXHIBIT 7
for a small number of overall patents—only
WIND AND SOLAR PATENTS
1.6 percent thus far—but their growth and
Patents in energy generation—solar, wind, hydro and
the growth in wind patents demonstrate
geothermal—have accounted for less than a fth of all clean
technology patents registered in the past 10 years. Patents for
burgeoning private-sector interest in a diverse
solar technologies have historically dominated, but recently an
renewable energy portfolio.
increasing number of patents have been registered for wind
energy technologies.
Venture Capital
GROWTH OF WIND AND SOLAR PATENTS, 1999-2008
Tracking venture capital investments across
100
Solar energy
Wind energy
all 50 states shows where investors see
–15%
market opportunities. Beginning in 2006,
80
+155%
venture capital investments in businesses
that are drivers of the clean energy economy
60
grew dramatically, increasing annually by an
40
average of $1.6 billion (Exhibit 8). In fact,
in 2008 clean venture capital investments
20
accounted for 15 percent of all global
venture capital investments, up from 9
0 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08
percent in 2007,63 and domestic clean venture
SOURCE: Pew Charitable Trusts, 2009, based on data from 1790 Analytics; analysis by Pew
capital investments outpaced international
Center on the States and Collaborative Economics.
investments.64 In 2008 alone, investors
directed $5.9 billion into American businesses
existing product lines and gain advantages
in the clean energy economy, a 48 percent
over their competition.
increase over 2007 investment totals.
Between 1999 and 2008, 8,384 clean energy
Given the national recession, the news was not
technology patents were registered in the
as encouraging in the last quarter of 2008 and
United States. Although traditional battery
first quarter of 2009. In April, the Cleantech
technology patents have accounted for nearly
Group reported that investments in clean
half of all registered clean energy technology
technology were down 48 percent in the first
patents in the last 10 years, registrations for
three months of 2009, compared with a year
hybrid systems and fuel cells62 have begun to
earlier.65 But clean tech actually fared better
gain ground (Exhibit 6). Among clean energy
than other industries: Total venture capital
generation patents—which have accounted
across all sectors for the first quarter of 2009
for 15.3 percent of all patents registered in the
was down 61 percent from the first quarter
past 10 years—solar technologies historically
of 2008, according to the National Venture
have outpaced other parts of the sector, but
Capital Association.66 The Cleantech Group
they have declined in recent years as the
projects that clean technology investments
solar industry has begun to focus more
will rebound quickly. “The long-term drivers
on implementing and scaling up existing
for cleantech are still intact,” the group
technologies rather than creating new ones.
reported in April 2009. These include the
The number of wind technology patents has
growing demand for energy services, the
climbed rapidly (Exhibit 7). Geothermal and
stress on water supplies, the need to reduce
24
The Clean Energy Economy | The Pew Charitable Trusts
EXHIBIT 8
VENTURE CAPITAL INVESTMENTS
Since 2006, venture capital investments in clean technology
businesses have grown dramatically. Between 2006 and 2008,
investments increased by an average of $1.5 billion annually. In
T H E C L E A N E N E R G Y E C O N O M Y : N A T I O N A L N U M B E R S
2008 alone, $5.9 billion of venture capital was invested in clean
technology businesses.
Venture capital is an essential source of
VENTURE CAPITAL INVESTMENTS
EXHIBIT 8
IN CLEAN TECHNOLOGY, 1999-2008
private equity for emerging technologies.
VENTURE CAPITAL INVESTMENTS
$5.9 billion
$6 billion
For business startups in the clean energy
Since 2006, venture capital investments in clean technology
economy, it is indispensable. “You have to
5
businesses have grown dramatically. Between 2006 and 2008,
have VC backing in order to bring the
investments increased by an average of $1.5 billion annually. In
4
product to commercialization,” said Tibbs,
NOTE: Investment values are adjusted for
2008 alone, $5.9 billion of venture capital was invested in clean
in ation and reported in 2008 dollars
president of Project FROG. “It’s what greases
3
technology businesses.
the wheel.” Unlike many other types of
VENTURE CAPITAL INVESTMENTS
2
investors, venture capitalists target early-stage
IN CLEAN TECHNOLOGY, 1999-2008
$360.3 million
$5.9 billion
companies and cutting-edge technologies
1
$6 billion
with high growth potential. They are willing
0
5
to take significant risks in exchange for
‘99
‘00
‘01
‘02
‘03
‘04
‘05
‘06
‘07
‘08
SOURCE: Pew Charitable Trusts, 2009, based on data from The Cleantech GroupTM LLC;
4
potentially substantial gains.
analysis by Pew Center on the States and Collaborative Economics.
NOTE: Investment values are adjusted for
in ation and reported in 2008 dollars
3
Innovation in the form of new clean energy
technologies is neither cheap nor easy. For
2
$360.3 million
1
EXHIBIT 9
0 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08
AREAS OF VENTURE
CAPITAL INVESTMENT
SOURCE: Pew Charitable Trusts, 2009, based on data from The Cleantech GroupTM LLC;
analysis by Pew Center on the States and Collaborative Economics.
Venture capital funding in clean technology over the last three
greenhouse gas emissions, and a limited
years has totaled nearly $12.6 billion. Investments in Clean
Energy companies dominated all venture capital investments,
supply of traditional fossil fuels, according to
accounting for 69 percent of investments between 2006 and
the report.67 “It’s important not to miss the
2008. Companies in Environmentally Friendly Production and
forest for the trees,” Nicholas Parker, executive
EXHIBIT 9
Conservation and Pollution Mitigation attracted more than
chairman of the Cleantech Group, said in
AREAS OF VENTURE
$2 billion in investment during the same time period.
January 2009. “In 2008, there was a quantum
CAPITAL INVESTMENT
CLEAN VENTURE
leap in talent, resources and institutional
CAPITAL
Energy E ciency
appetite for clean technologies. Now, more
Venture capital funding in clean technology over the last three
INVESTMENTS,
$943.1 million, 8%
than ever, clean technologies represent the
years has totaled nearly $12.6 billion. Investments in Clean
2006-2008
Energy companies dominated all venture capital investments,
biggest opportunities for job and wealth
accounting for 69 percent of investments between 2006 and
Conservation and
creation.”68
2008. Companies in Environmentally Friendly Production and
Pollution Mitigation
$1.08 billion, 9%
Conservation and Pollution Mitigation attracted more than
Investments in Clean Energy companies
$2 billion in investment during the same time period.
Environmentally
accounted for 69 percent of all clean venture
Friendly
Production
capital investments between 2006 and
CLEAN VENTURE
CAPITAL
Energy E ciency
$1.82 billion
Clean Energy
2008 (Exhibit 9). In fact, 54 percent of all
14%
INVESTMENTS,
$943.1 million, 8%
$8.73 billion
investments have gone to energy generation
2006-2008
69%
companies alone. Many of those dollars went
Conservation and
to solar technologies; in 2008, funding for
Pollution Mitigation
SOURCE:
Pew Charitable Trusts,
solar companies accounted for 40 percent
$1.08 billion, 9%
2009, based on data
from The Cleantech
of all venture capital raised globally for
Environmentally
GroupTM LLC; analysis by
NOTE: Investment values are adjusted for in ation and
Pew Center on the
reported in 2008 dollars. The category of Training and
businesses in the clean energy economy.
Friendly
69
States and Collaborative
Support is not represented because it is not a category
Production
Economics.
of investments tracked by The Cleantech Group LLC.
$1.82 billion
Clean Energy
14%
$8.73 billion
69%
The Clean Energy Economy
25
SOURCE:
Pew Charitable Trusts,
2009, based on data
from The Cleantech
GroupTM LLC; analysis by
NOTE: Investment values are adjusted for in ation and
Pew Center on the
reported in 2008 dollars. The category of Training and
States and Collaborative
Support is not represented because it is not a category
Economics.
of investments tracked by The Cleantech Group LLC.
T H E C L E A N E N E R G Y E C O N O M Y : N A T I O N A L N U M B E R S
every breakthrough, hundreds more fall
enabled aggressive research and development;
short, necessitating ongoing, capital-heavy
Solyndra tested its manufacturing processes
investments in research and development.
at the National Renewable Energy Laboratory
Still more capital is required to bring them to
through a public-private partnership with the
market at a scale that makes them competitive
federal government.73
with carbon-intensive forms of energy.
“Energy is a $6 trillion market worldwide. It
In March 2009, Solyndra became the first
is the mother of all markets,” John Doerr, a
beneficiary of the U.S. Department of
partner at Kleiner Perkins Caufield & Byers,
Energy’s loan-guarantee program, introduced
one of the country’s largest venture capital
in 2005 to encourage the development and
firms, told the nation’s governors in February
adoption of new clean energy technologies.74
2008.70 “Our investments, our policies, and
The $535 million loan guarantee will enable
our government R&D must match the scale of
the company to build a second factory in
this problem. And we’ve got to work together:
Fremont. Solyndra CEO and founder Chris
If we don’t scale, we’re going to fail.”
Gronet said the additional funding will
help the company achieve the economies
For example, Solyndra, a Fremont, California-
of scale needed to deliver solar electricity
based solar company, developed and patented
at prices that are competitive with utility
technology for commercial rooftops that
rates.75 These economies of scale also mean
captures more hours of optimal sunlight per
more jobs. The new plant will employ 1,000
day and allows the panels to lie flat instead
full-time employees upon its completion,
of on an angle, making installation easier and
and 3,000 construction workers will be put
less expensive.71 Recognizing the commercial
to work immediately to build it. Solyndra
viability and scalability of the technology,
representatives expect their product to be
venture capital firms have poured more than
cost-competitive with coal in the next two to
$920 million into the company since its
three years.76
founding in 2005.72 Investments also have
26
The Clean Energy Economy | The Pew Charitable Trusts
T H E C L E A N E N E R G Y E C O N O M Y : N A T I O N A L N U M B E R S
A VENTURE CAPITAL FIRM:
MOHR DAVIDOW VENTURES
Will Coleman’s venture fund, Mohr Davidow Ventures,
Mohr Davidow Ventures, based in Menlo Park, California,
with $2 billion under management, is putting money into
focused exclusively on Internet-related technology
emerging energy generation technologies for a pragmatic
investments when it was created in the 1980s, and has
reason: it believes there’s a lot of money to be made
since broadened its portfolio to include technologies
there. “Cleantech venture capital is not a mission-driven
related to the life sciences, and, most recently, businesses
business,” said Coleman, a partner at Mohr Davidow.
in the clean energy economy. The firm’s current
“It’s focused on real opportunities and real markets. We
investments include support for Nanosolar, a solar panel
wouldn’t be here investing if we didn’t believe that.”77
manufacturer in California, and Hycrete, a developer of
more sustainable construction materials.78
Coleman said he pays close attention to a company’s
location when deciding whether to invest. The state’s
“Cleantech venture capital is not a
policy climate plays a major role in his decision, he said, and
he is interested in everything from potential tax incentives
mission-driven business…It’s focused
to the existence of a strong renewable portfolio standard,
on real opportunities and real markets.
which he said helps create market stability. He also believes
We wouldn’t be here investing if we
government investments are essential to stimulate and
support the research and development that is necessary
didn’t believe that.”
before technological innovations can be brought to market.
—Wil Coleman
“We play a catalyzing role in developing technologies that
Mohr Davidow Ventures
can be deployed commercial y,” he said. “But in order
to do that you have to have a deep pool of research and
development going on in universities and other research
centers. The opportunities for us real y depend on the
health and depth of those pools.”
The Clean Energy Economy
27
The Clean Energy Economy:
State-By-State Numbers
Jobs
in the clean energy economy in the context
of each state’s total jobs, which presents a
Every state and the District of Columbia
baseline understanding of how the clean
have a piece of the 770,385 jobs and 68,203
energy sector relates to overall economic
businesses in America’s clean energy economy
performance in the states. And third, we
(see Exhibit 1, page 8). Yet no two states look
compared the growth rate of jobs in each
the same in terms of the type or number of
state’s clean energy economy to the growth
jobs. For example, California has more jobs
rate of its overall jobs. Looking ahead, these
in the clean energy economy than any other
analyses offer lawmakers, business leaders
state—more than 125,000—a number that
and the public a way to measure the return on
grew annually by an average of 0.9 percent
investment of current and future clean energy
between 1998 and 2007. Wyoming has the
policy decisions.
fewest of these jobs nationally, at just more
than 1,400, but they have grown annually by
an average of 5.2 percent, indicating strong
Analysis One: States’ Clean Energy
momentum and potential.
Economies—How Big Are They, and
How Fast Are They Growing?
Each state has different competitive
advantages when it comes to growing jobs
Looking simultaneously at the total number
and businesses in the clean energy economy,
of jobs and businesses (large or small) and
attracting private venture capital investments
average annual growth rate of the jobs
and incubating research and development.
(fast growing, growing or losing), states’
Some states have abundant natural resources
clean energy economies fall into six groups:
such as wind and sunshine, while others are
large and fast growing, growing or losing;
home to dozens of research universities. What
and small and fast growing, growing or losing
is important is that policy makers understand
(Exhibit 10).
and capitalize on their states’ unique strengths
Large and fast growing. Three states have large
to expand their share of the clean energy
and fast-growing clean energy economies:
economy.
Colorado, Oregon and Tennessee. In 2007,
Pew conducted three analyses to provide
each of these states exceeded the national
an effective way of comparing states’ clean
averages for both the number of jobs in the
energy economies. First, we looked at the total
clean energy economy (15,106) and the
number of jobs in each state’s clean energy
average annual growth rate for those jobs
economy in 2007 and the annual growth
(1.9 percent). These states are geographically
rate of those jobs between 1998 and 2007.
dispersed, demonstrating that location
Second, we looked at the total number of jobs
is not the sole factor in the success and
28
The Clean Energy Economy | The Pew Charitable Trusts
T H E C L E A N E N E R G Y E C O N O M Y : S T A T E - B Y - S T A T E N U M B E R S
EXHIBIT 10
WHERE ARE THE JOBS IN THE CLEAN ENERGY ECONOMY?
Looking simultaneously at the total number of jobs (large or small) and their average annual growth rate (fast growing, growing or
losing), states’ clean energy economies fall into six groups: large and fast-growing jobs, growing jobs or losing jobs; and small and
fast-growing jobs, growing jobs or losing jobs. Large states had more jobs in their clean energy economies in 2007 than the national
average of 15,106 jobs. Small states had fewer than the national average of clean energy economy jobs. States with fast-growing clean
energy economies experienced average annual growth between 1998 and 2007 that exceeded the national average of 1.9 percent.
Growing states had a positive average annual rate of growth less than 1.9 percent and losing states have experienced negative growth.
WA
NH
ME
MT
ND
VT
OR
MN
MA
ID
WI
SD
NY
WY
MI
RI
IA
PA
CT
NE
NJ
NV
OH
UT
IL
IN
DE
CO
WV
CA
KS
VA
MO
KY
MD
DC
NC
TN
AZ
NM
OK
AR
SC
Large, fast growing jobs
AL
GA
MS
Large, growing jobs
TX
T
LA
Large, losing jobs
AK
Small, fast growing jobs
FL
U.S. average:
Small, growing jobs
HI
15,106 jobs
Small, losing jobs
1.9 percent annual growth
TOTAL
AVG. ANNUAL
TOTAL
AVG. ANNUAL
TOTAL
AVG. ANNUAL
CLEAN
GROWTH
CLEAN
GROWTH
CLEAN
GROWTH
STATE
JOBS 2007
1998-2007
STATE
JOBS 2007
1998-2007
STATE
JOBS 2007
1998-2007
Alabama
7,849
0.31%
Kentucky
9,308
1.09%
North Dakota
2,112
3.17%
Alaska
2,140
1.14
Louisiana
10,641
2.06
Ohio
35,267
0.85
Arizona
11,578
2.19
Maine
6,000
2.34
Oklahoma
5,465
0.89
Arkansas
4,597
0.99
Maryland
12,908
–0.11
Oregon
19,340
4.77
California
125,390
0.88
Massachusetts
26,678
0.52
Pennsylvania
38,763
–0.48
Colorado
17,008
1.98
Michigan
22,674
1.20
Rhode Island
2,328
0.37
Connecticut
10,147
1.11
Minnesota
19,994
1.38
South Carolina
11,255
3.56
Delaware
2,368
0.23
Mississippi
3,200
2.57
South Dakota
1,636
7.89
District of Columbia
5,325
2.13
Missouri
11,714
0.71
Tennessee
15,507
2.14
Florida
31,122
0.90
Montana
2,155
0.15
Texas
55,646
1.70
Georgia
16,222
1.18
Nebraska
5,292
10.00
Utah
5,199
–1.31
Hawaii
2,732
4.29
Nevada
3,641
3.15
Vermont
2,161
1.69
Idaho
4,517
10.11
New Hampshire
4,029
0.44
Virginia
16,907
0.66
Illinois
28,395
–0.25
New Jersey
25,397
–1.08
Washington
17,013
0.23
Indiana
17,298
1.88
New Mexico
4,815
4.73
West Virginia
3,065
–0.36
Iowa
7,702
2.66
New York
34,363
–0.14
Wisconsin
15,089
–0.55
Kansas
8,017
4.74
North Carolina
16,997
1.62
Wyoming
1,419
5.16
SOURCE: Pew Charitable Trusts, 2009, based on the National Establishment Time Series Database; analysis by Pew Center on the States and Collaborative Economics.
The Clean Energy Economy
29
T H E C L E A N E N E R G Y E C O N O M Y : S T A T E - B Y - S T A T E N U M B E R S
vitality of a state’s clean energy economy.
of job growth. For example, Idaho and South
Tennessee has had success developing jobs
Dakota each had fewer than 5,000 of these
in the Conservation and Pollution Mitigation
jobs, but their average annual growth rates are
category, which includes recycling, waste
among the top in the nation at 10.1 percent
treatment and water management; more than
and 7.9 percent, respectively. The other 13
three quarters of the state’s jobs in the clean
states are Arizona, Hawaii, Iowa, Kansas,
energy economy are in this category. Colorado
Louisiana, Maine, Mississippi, Nebraska,
has capitalized on its natural wind and sun
Nevada, New Mexico, North Dakota, South
resources to stimulate job growth in Clean
Carolina and Wyoming.
Energy, while Oregon has become a leader in
Energy Efficiency, with a quarter of its jobs in
Small and growing. Another 12 states have
the clean energy economy in this category.
small and growing clean energy economies,
with fewer than average jobs and some annual
Large and growing. Twelve states have large
job growth, although their rates of growth—
and growing clean energy economies: Their
less than 2 percent—lag behind states with
numbers of jobs in the clean energy economy
similarly sized clean energy economies.
in 2007 exceeded the national average and
These states are Alabama, Alaska, Arkansas,
have grown by an average of 1 percent
Connecticut, Delaware, Kentucky, Missouri,
annually. These states’ clean energy economies
Montana, New Hampshire, Oklahoma, Rhode
are expanding at a moderate but steady rate,
Island and Vermont.
and they have a strong foundation on which
to build. These states are California, Florida,
Small and losing. Maryland, Utah, West
Georgia, Indiana, Massachusetts, Michigan,
Virginia and Wisconsin had fewer than
Minnesota, North Carolina, Ohio, Texas,
average jobs in the clean energy economy in
Virginia and Washington.
2007 and experienced net losses in these jobs
during the past 10 years. In Maryland, at least,
Large and losing. Illinois, New Jersey, New
that trend may change in coming years. New
York and Pennsylvania have large clean
legislation that aims to reduce greenhouse gas
energy economies that are losing jobs.
emissions by 25 percent by 2020 was enacted
Difficult economic conditions have led to a net
by Maryland lawmakers in May 2009, and it
loss of these jobs in these four states during
may drive greater demand for environmentally
the past 10 years. Still, Illinois, New Jersey,
friendly products and services in the state.79
New York and Pennsylvania each rank among
the top 10 states for total jobs in the clean
Analysis Two: States’ Clean Energy Economies
energy economy across several of Pew’s five
as a Share of Their Overal Economies
categories (Exhibit 11).
Jobs in the clean energy economy accounted
Small and fast growing. Comprising the largest
for 0.49 percent of all jobs nationally in 2007.
group, 15 states and the District of Columbia
Twenty-two states exceeded that U.S. average,
are categorized as having small and fast–
including several by a large margin (Exhibit
growing clean energy economies. These states
12). Oregon led the nation with just more
had fewer than the national average of jobs
than 1 percent of all of its jobs focused on
in the clean energy economy in 2007 but
the clean energy economy in 2007. Although
exceeded the national average for annual rate
Maine had just 6,000 jobs in the clean energy
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T H E C L E A N E N E R G Y E C O N O M Y : S T A T E - B Y - S T A T E N U M B E R S
EXHIBIT 11
STATE LEADERS IN JOBS ACROSS
THE CLEAN ENERGY ECONOMY BY CATEGORY
Although California leads in overall employment in each category, a closer look reveals other notable trends. Arizona makes the top 10
in Clean Energy but in no other category. Massachusetts, New York and Ohio are among the top 10 in all but one category.
While Arizona, Arkansas, Iowa, Maine, Nebraska, Wisconsin and the District of Columbia each have fewer than 15,106 jobs in the clean
energy economy—the national average—they rank among the top 10 states in one of the ve categories. In all, nearly half the states
rank among at least the top 10 states in at least one category of the clean energy economy.
Environmentally
Conservation
Clean
JOBS
Energy
JOBS
Friendly
JOBS
and Pollution
JOBS
Training
JOBS
Energy
2007
E ciency
2007
Production
2007
Mitigation
2007
and Support
2007
California
27,672
California
10,510
California
13,666
California
64,799
California
8,743
Pennsylvania
10,099
Texas
6,353
Minnesota
3,815
Texas
40,617
New York
3,499
Minnesota
4,030
Ohio
5,367
Oregon
3,304
Pennsylvania
24,703
Illinois
3,216
Ohio
3,653
Oregon
4,893
Ohio
2,800
Florida
24,686
Massachusetts
3,155
Texas
3,479
New York
3,311
Iowa
2,237
New York
23,082
District of Columbia
3,130
New York
3,421
Wisconsin
2,801
Texas
2,223
Ohio
22,296
Texas
2,974
Michigan
2,941
Maine
2,560
Nebraska
2,162
New Jersey
20,060
Florida
2,249
Massachusetts
2,890
Massachusetts
2,553
Illinois
1,921
Illinois
19,631
Virginia
1,755
District of Columbia
2,728
Virginia
2,135
Colorado
1,361
Massachusetts
17,374
Pennsylvania
1,742
Colorado
2,639
Florida
2,071
Arkansas
1,303
Michigan
15,852
North Carolina
1,659
SOURCE: Pew Charitable Trusts, 2009, based on the National Establishment Time Series Database; analysis by Pew Center on the States and Collaborative Economics.
economy as of that year, it was a close second
Job growth in the clean energy economy
with 0.85 of its overall jobs dedicated to the
eclipsed growth for all jobs by more than
clean energy economy. At the other end of the
2 percent in 11 states: Hawaii, Idaho, Iowa,
spectrum, 0.24 percent of Mississippi’s total
Kansas, Mississippi, New Mexico, North
jobs were part of the clean energy economy in
Dakota, Oregon, South Carolina, South
2007, although the state’s number of jobs in
Dakota and Wyoming. Oregon’s large and
this area was growing.
fast–growing clean energy economy, for
example, has dwarfed the growth of overall
Analysis Three: Growth of Jobs in the
jobs in the state, expanding by an average
Clean Energy Economy Compared with
of 4.8 percent compared with an average of
less than 1 percent annually. This growth
Overal Jobs Growth
is not limited to one industry or job type:
Nationally, jobs in the clean energy
Oregon’s jobs in the clean energy economy
economy grew by an average of 1 percent
have experienced marked growth during the
annually during the past 10 years, while
past 10 years in all five of Pew’s categories.
total employment grew by an average of 0.4
And although North and South Dakota have
percent annually. In 38 states and the District
very small clean energy economies, the growth
of Columbia, job growth in the clean energy
of these jobs in both states has outpaced their
economy outperformed total job growth
growth of total jobs. In North Dakota, overall
between 1998 and 2007. In a number of
jobs grew by 1.0 percent, but jobs in the clean
states, job gains in the clean energy economy
energy economy grew by an average of 3.2
have helped lessen total job losses.
percent. In South Dakota, overall jobs grew by
The Clean Energy Economy
31
T H E C L E A N E N E R G Y E C O N O M Y : S T A T E - B Y - S T A T E N U M B E R S
EXHIBIT 12
CLEAN ENERGY ECONOMIES AS A
SHARE OF STATES’ OVERALL ECONOMIES
It is important for states to know just how many of their total jobs fall within the clean energy economy. Nationally, jobs in the clean
energy economy accounted for 0.49 percent of all jobs in 2007; 22 states exceeded that national average.
WA
NH
ME
MT
ND
VT
OR
MN
MA
ID
WI
SD
NY
WY
MI
RI
IA
PA
CT
NE
NJ
NV
OH
UT
IL
IN
DE
CO
WV
CA
KS
VA
MO
KY
MD
DC
NC
TN
AZ
NM
OK
AR
SC
Highest
(1.02% - 0.82%)
AL
GA
MS
Second highest
TX
TX
LA
(0.81% - 0.63%)
AK
Second smallest
FL
(0.62% - 0.43%)
Smallest
HI
(0.42% - 0.24%)
TOTAL
PERCENT
TOTAL
PERCENT
TOTAL
PERCENT
JOBS
CLEAN
JOBS
CLEAN
JOBS
CLEAN
Alabama
2,193,589
0.36%
Kentucky
2,069,602
0.45%
North Dakota
422,054
0.50%
Alaska
388,361
0.55
Louisiana
2,326,888
0.46
Ohio
6,304,302
0.56
Arizona
2,661,437
0.44
Maine
707,195
0.85
Oklahoma
1,784,492
0.31
Arkansas
1,366,809
0.34
Maryland
3,108,256
0.42
Oregon
1,902,294
1.02
California
17,556,872
0.71
Massachusetts
3,870,356
0.69
Pennsylvania
6,542,137
0.59
Colorado
2,668,069
0.64
Michigan
5,279,234
0.43
Rhode Island
549,754
0.42
Connecticut
2,150,723
0.47
Minnesota
3,143,012
0.64
South Carolina
2,059,151
0.55
Delaware
502,773
0.47
Mississippi
1,356,603
0.24
South Dakota
444,659
0.37
District of Columbia
1,021,958
0.52
Missouri
3,178,657
0.37
Tennessee
3,144,614
0.49
Florida
9,903,922
0.31
Montana
512,093
0.42
Texas
11,726,811
0.47
Georgia
4,955,677
0.33
Nebraska
1,038,673
0.51
Utah
1,291,211
0.40
Hawaii
651,894
0.42
Nevada
1,280,532
0.28
Vermont
365,646
0.59
Idaho
718,373
0.63
New Hampshire
735,051
0.55
Virginia
4,238,337
0.40
Illinois
6,792,326
0.42
New Jersey
4,957,892
0.51
Washington
3,098,042
0.55
Indiana
3,348,351
0.52
New Mexico
970,632
0.50
West Virginia
792,474
0.39
Iowa
1,800,264
0.43
New York
9,964,700
0.34
Wisconsin
3,150,000
0.48
Kansas
1,531,164
0.52
North Carolina
4,629,118
0.37
Wyoming
302,245
0.47
SOURCE: Pew Charitable Trusts, 2009, based on the National Establishment Time Series Database; analysis by Pew Center on the States and Collaborative Economics.
32
The Clean Energy Economy | The Pew Charitable Trusts
T H E C L E A N E N E R G Y E C O N O M Y : S T A T E - B Y - S T A T E N U M B E R S
an average of only 0.6 percent annually, while
Minnesota, Missouri, Nevada, North Carolina,
jobs in the clean energy economy grew by
Oklahoma, Rhode Island, Tennessee, Texas,
an average of 7.9 percent during the past 10
Vermont and Washington. The difference
years (Exhibit 13).
between the average annual growth of jobs in
the clean energy economy and total jobs is less
than 2 percentage points in these states. The
EXHIBIT 13
growth trends in these 18 states underscore
THE CLEAN ENERGY ECONOMIES
the fact that jobs in the clean energy economy
OF THE DAKOTAS
are an important contributor to states’ fiscal
health and a growing source of employment.
North Dakota and South Dakota have very small clean energy
economies. The number of jobs in the clean energy economy in
Seven states—Connecticut, Delaware,
each state was less than 2,200 in 2007. Despite the small overall
Indiana, Massachusetts, Michigan, Nebraska
size of their clean energy economies, the growth of these jobs in
and Ohio—and Washington, D.C., suffered
both states outpaced their growth of total jobs between 1998 and
2007. In North Dakota, overall jobs grew by 1.0 percent, but jobs
overall job losses but gained jobs in the clean
in the clean energy economy grew by an average of 3.2 percent
energy economy between 1998 and 2007.
annually over the past 10 years. In South Dakota, overall jobs
In Nebraska, for example, total jobs have
grew by an average of only 0.6 percent annually, while jobs in the
remained relatively constant, declining slightly
clean energy economy grew by an average of 7.9 percent during
by an average of 0.5 percent annually, but
the past 10 years.
during the same time period, jobs that are
AVERAGE ANNUAL GROWTH
1,636
+7.9%
part of the clean energy economy increased
IN JOBS, 1998 TO 2007
jobs in the
clean energy
rapidly, growing an average of 10 percent.
economy
The federal government wants to replicate this
Jobs in the
in South
Dakota
pattern nationwide with its tens of billions in
clean energy economy
in 2007
energy-related stimulus spending, designed to
All jobs
help replace some lost jobs with new ones that
are part of the clean energy economy.80
Finally, in New York and Illinois, both clean
2,112
+3.2%
energy economy jobs and overall jobs had
jobs in the
negative growth rates between 1998 and
clean energy
economy
2007, although clean energy economy job
in North
growth shrank at a slower rate.
Dakota
in 2007
+1.0%
+0.6%
Venture Capital
NORTH DAKOTA
SOUTH DAKOTA
Venture capital investments help drive states’
SOURCE: Pew Charitable Trusts, 2009, based on the National Establishment Time Series
clean energy economies, allowing companies
Database; analysis by Pew Center on the States and Collaborative Economics.
to grow, hire new employees and scale up
the production and distribution of goods and
Job growth in the clean energy economy has
services (Exhibit 14). Clean startups began
had a slight edge over total job growth in 18
attracting venture capital in the 1990s, a
states: Alabama, Arizona, Arkansas, California,
trend that accelerated in recent years. By
Colorado, Kentucky, Louisiana, Maine,
2006, clean investments had become a
The Clean Energy Economy
33
T H E C L E A N E N E R G Y E C O N O M Y : S T A T E - B Y - S T A T E N U M B E R S
significant force in the world of venture
developed jobs and businesses in the clean
capital, and between 2006 and 2008, 40 states
energy economy: Alabama, Alaska, Kentucky,
and the District of Columbia attracted venture
Louisiana, Maine, Montana, Nebraska, North
capital investments. See Appendix E for
Dakota, South Carolina and South Dakota.
the 50-state table.
Some of these states, such as Kentucky,
Maine and North Dakota, have noteworthy
California was by far the largest recipient of
shares of jobs in the Clean Energy and Energy
venture capital investments, attracting more
Efficiency categories, which accounted for
than $6.5 billion between 2006 and 2008.
81 percent of venture capital in the clean
Most of the states that attracted venture
technology sector in 2008—meaning that
capital investments have either large and fast-
they may be well positioned to attract venture
growing or large and growing clean energy
capital funds in the future.
economies. The number of jobs in the clean
energy economy a state has, and how fast that
number is growing, are signals to potential
Patents
investors—both public and private—of
The states that led in patent registrations
promising market opportunities. That said,
between 1999 and 2008 also led in venture
venture capital is important but not essential
capital funding and overall employment.
to a state’s ability to develop strong industries
Technology patents help states pioneer new
in the clean energy economy; existing
clean products and incubate research and
technologies offer potential for growth and are
development to help stimulate businesses
not as reliant on venture capital investment.
and jobs in the clean energy economy within
Ten states have not attracted venture capital
their borders. All 50 states and the District
funding during the past three years but have
THE POWER OF A STATE’S RESEARCH INVESTMENT:
SOUTH CAROLINA
Dr. Kenneth Reifsnider directs the University of South
the City of Columbia, South Carolina, to bring scientists
Carolina’s Solid Oxide Fuel Cel program, which designs
and engineers together to determine how future fuels
processes that convert chemical energy to electrical power.
can be integrated into everyday lives. The State of
Hydrogen happens to be the fuel that Reifsnider specializes
South Carolina has invested more than $11 million in
in, but he does not believe in a single solution to cleaner,
this comprehensive research partnership, which has
alternative energy needs. His work aims to answer the
made it a national leader among states in future fuel
question, “How can we use energy in its many forms?”81
technology. In 2009, Columbia hosted the National
Hydrogen Association’s annual conference, at which
Reifsnider’s program is just one component of the
the city showcased its fuel cell district—the first in the
university’s Future Fuels initiative, which develops
southeast—and a hybrid-electric fuel cell bus that begins
cleaner energy options, including solar and hydrogen, to
service this fall. Those and other activities have drawn
successfully replace fossil fuels. The University of South
Reifsnider and other top researchers to South Carolina’s
Carolina has established partnerships with 15 private
program. “This is the very best place to make a step
companies, the Savannah River National Laboratory and
forward,” said Reifsnider.82
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The Clean Energy Economy | The Pew Charitable Trusts
T H E C L E A N E N E R G Y E C O N O M Y : S T A T E - B Y - S T A T E N U M B E R S
of Columbia have had at least one registered
clean technology patent in the past 10 years.
Exhibit 15 shows the 10 states with the highest
number of patent registrations from 1999 to
2008. See Appendix E for the 50-state table.
EXHIBIT 14
EXHIBIT 15
VENTURE
CLEAN
CAPITAL
TECHNOLOGY
INVESTMENTS
PATENTS
Top 10 states attracting
Top 10 states in clean
venture capital investments
technology patent
in companies in the clean
registrations 1999-2008
energy economy, 2006-2008.
California
1,401
In millions.
New York
909
California
$6,580
Michigan
749
Massachusetts
1,278
Texas
414
Texas
717
Connecticut
404
Washington
635
Massachusetts
384
Colorado
622
Ohio
309
Maryland
324
Illinois
297
New Jersey
283
Georgia
256
Pennsylvania
233
New Jersey
248
New York
210
SOURCE: Pew Charitable Trusts, 2009,
Georgia
180
based on data from 1790 Analytics;
analysis by Pew Center on the States
NOTE: Investment values are adjusted for
and Collaborative Economics.
in ation, reported in 2008 dollars and
rounded to the nearest $1,000,000.
SOURCE: Pew Charitable Trusts, 2009,
based on data from The Cleantech
GroupTM LLC; analysis by Pew Center on
the States and Collaborative Economics.
The Clean Energy Economy
35
Public Policy and the
Future of the Clean
Energy Economy
Policies intended to advance the clean energy
Governor Martin O’Malley told his state’s
economy—from comprehensive energy plans,
Clean Energy Center in March 2009.83
renewable energy standards, energy efficiency
measures and tailpipe reduction requirements
Financial Incentives: Every state offers some
to the development of alternative fuels, job
form of financial incentive to drive its clean
retraining and waste reduction efforts—have
energy economy. Thirty-two states provide
been adopted or are being actively considered
residential, commercial and industrial loan
by both the federal government and states. It
financing for the purchase of renewable energy
is too early to tell to what degree these efforts
or energy efficiency systems or equipment.
will succeed in stimulating U.S. job growth,
Twenty-three states and the District of
strengthening America’s competitiveness,
Columbia offer rebate programs to promote
curbing pollution and conserving resources,
the installation of renewable energy systems
or which approaches are particularly
and energy efficiency measures such as solar
effective. But Pew’s analysis indicates that
water heating and photovoltaic systems. Forty-
they have great potential because they create
six states offer some form of tax incentive to
significant incentives for both the private and
encourage residents and corporations to use
public sectors to develop new technologies,
renewable energy or adopt energy efficiency
infrastructure and processes for clean energy,
systems and equipment.84
efficiency and conservation.
Regional Clean Energy Initiatives: States have
banded together to develop regional initiatives
State Policies
to reduce carbon dioxide emissions from
power plants, increase renewable energy
Although every state has a piece of today’s
generation, track renewable energy credits and
clean energy economy, clear winners and
research and establish baselines for carbon
losers will emerge going forward. Policy
sequestration. Regional initiatives can be
makers who act quickly and effectively could
more efficient than programs at the state level,
see their states flourish, while others may
because they encompass broader geographic
lose opportunities for new jobs, businesses
areas and create more uniform regulatory
and investments. “The keys to our economic
environments. Twenty-three states are
potential as a state and as a country—not
members of three major regional initiatives:
to mention our survival as a species—will
(1) Midwestern Greenhouse Gas Reduction
likely rest in our ability to unlock, harness
Accord (MGGRA); (2) Regional Greenhouse
and advance green technologies,” Maryland
Gas Initiative (RGGI); and (3) Western Climate
36
The Clean Energy Economy | The Pew Charitable Trusts
P U B L I C P O L I C Y A N D T H E F U T U R E O F T H E C L E A N E N E R G Y E C O N O M Y
EXHIBIT 16
STATES’ CLEAN ENERGY POLICIES
Regional Initiatives
States have banded together to develop
WA
NH
MT
ME
ND
VT
regional initiatives to reduce carbon
MN
dioxide emissions, increase renewable
OR
ID
WI
MA
SD
NY
energy generation, track renewable
WY
MI
RI
IA
NE
energy credits and research and establish
PA
CT
NV
OH
NJ
UT
baselines for carbon sequestration.
IL
IN
CO
WV
CA
DE
KS
MO
Twenty-three states are members
VA
KY
MD
DC
of three major regional initiatives*.
NC
TN
AZ
NM
OK
AR
SC
Nine additional states and the District
GA
MS
AL
of Columbia are observers of regional
Regional
TX
TX
LA
initiatives. Florida has established its own
initiative
AK
individual state cap-and-trade program.
FL
Observer
HI
* Midwestern Greenhouse Gas Reduction Accord
Note: Florida has established its
(MGGRA); Regional Greenhouse Gas Initiative (RGGI);
own state cap-and-trade program.
and Western Climate Initiative (WCI).
Renewable Portfolio Standards
Twenty-nine states and the District of
WA
NH
ME
Columbia have established renewable
MT
ND
VT
OR
MN
portfolio standards requiring electricity
ID
WI
MA
SD
NY
providers to supply a minimum
WY
MI
RI
percentage or amount of customer power
IA
NE
PA
CT
NV
OH
NJ
from a renewable source of electricity.
UT
IL
IN
CO
WV
CA
DE
Five additional states have set voluntary
KS
MO
VA
KY
MD
DC
renewable portfolio standards.
NC
TN
AZ
NM
OK
AR
SC
GA
MS
AL
Renewable
TX
TX
LA
Portfolio
AK
Standard
FL
Voluntary
HI
Energy E ciency Resource Standards
Nineteen states have established a
WA
NH
MT
ME
stand-alone energy e ciency resource
ND
VT
OR
MN
standard or included a provision for
ID
WI
MA
SD
NY
energy e ciency within their renewable
WY
MI
RI
portfolio standard. Three additional
IA
NE
PA
CT
NV
OH
NJ
states, New Jersey, Massachusetts and
UT
IL
IN
CO
WV
CA
DE
VA
Rhode Island, are considering energy
KS
MO
KY
MD
DC
e ciency resource standards.
NC
TN
AZ
NM
OK
AR
SC
AL
GA
Energy
MS
E cient
TX
TX
LA
Resource
AK
Standard
FL
Considering
HI
NOTE: Policies current as of May 8, 2009
SOURCE: Pew Charitable Trusts, 2009; based on analysis by Pew Center for Global Climate Change, Database of State Incentives for Renewables and E ciency, and American Council for an
Energy E cient Economy.
The Clean Energy Economy
37
P U B L I C P O L I C Y A N D T H E F U T U R E O F T H E C L E A N E N E R G Y E C O N O M Y
Initiative (WCI). Florida has established its
providers to supply a minimum percentage or
own individual state cap-and-trade regulatory
amount of customer power from a renewable
program.
source of electricity. Florida, North Dakota,
South Dakota, Utah and Virginia have
Renewable Portfolio Standards: Twenty-nine
set voluntary RPS goals. These renewable
states and the District of Columbia have
energy targets are expected to drive growth
established renewable portfolio standards
in already fast-growing areas of the clean
(RPS) since 1983, requiring electricity
energy economy. In Colorado, for example,
A STATE POLICY LEADER:
TEXAS STATE REPRESENTATIVE WARREN CHISUM
Texas State Representative Warren Chisum (R-Pampa) is
legislators of all stripes are eager to talk about them.
best known for his outspoken conservative positions on
“Wind is a growing business and creates a lot of jobs,”
hot-button issues such as evolution and gay marriage.
said Chisum. “The industry takes some of our smallest,
Chisum spent most of his non-legislative career working
most rural towns and makes them pretty active.”86
on drilling rigs and truck yards.
Today, Texas would rank sixth in the world for wind
energy generation if it were a country. According to the
About a year ago, however, Chisum created the Texas
American Wind Energy Association, it dwarfs all other
Carbon Caucus, a bipartisan group of legislators who meet
states in wind capacity, and added more capacity than
any other state in 2008.87
Texas’ wind farms did not sprout up overnight, as Chisum
knows well from the 10 years he has spent on the House
Texas’ wind industry would not be
Environmental Regulations Committee. According
what it is today if the state had not put
to Chisum, before wind could take on a major role in
powering the state, a strong natural gas infrastructure had
in place an aggressive renewable port-
to be in place to provide back-up power when necessary.
folio standard and other public policy
And Texas’ wind industry would not be what it is today
measures 10 years ago, Chisum said.
if the state had not put in place an aggressive renewable
portfolio standard and other public policy measures 10
years ago, he said.
periodically to discuss issues related to carbon reduction
Chisum would like to see Texas be more proactive as it
and job creation and hear from leading thinkers from
looks toward its energy future. He sees solar power and
around the country. “The one and only rule is that we do
carbon sequestration as the state’s next big opportunities,
not discuss global warming,” Chisum said. “There will
and said he is sponsoring legislation this session that
be no debate about whether it is caused by man or not
would create an underwater well for carbon sequestration
as long as I’m in charge. We are only allowed to discuss
off the coast of Houston. “We’re preparing Texas,” he said.
what we are going to do about it.”85 Now that some of the
“We’re the largest carbon emitter, but we’re going to be
potential solutions—namely wind energy—are proving
the first ones to take that carbon and put it where it needs
not only viable but economically advantageous in Texas,
to be.”88
38
The Clean Energy Economy | The Pew Charitable Trusts
P U B L I C P O L I C Y A N D T H E F U T U R E O F T H E C L E A N E N E R G Y E C O N O M Y
lawmakers recently doubled the standard
West Virginia—offer financial incentives to
after seeing the ease with which a lower target
drive their clean energy economies, but as of
was met. “The standards created an economy
this writing do not participate in any regional
based on renewable energy, creating demand
initiatives and do not have either renewable
for workers to build and maintain wind farms
portfolio or energy efficiency resource
in areas that have suffered from a shrinking
standards in place.
tax base,” said state Representative Jack
Pommer (D-Boulder). “Some rural areas are
Federal Policies
now growing from the economic influx.”89
The federal government has helped spur
Energy Efficiency Resource Standards: Since
the development of the clean energy
1999, 19 states have established a stand-alone
economy through policy reform and strategic
Energy Efficiency Resource Standard (EERS)
investments. The Solid Waste Disposal
or included a provision for energy efficiency
Act, enacted in 1965, and the Resource
within the state’s RPS.90 EERS focus on
Conservation and Recovery Act, enacted
natural gas and electric utilities, encouraging
in 1976, fostered the development of
continually increasing energy savings over
the recycling, waste reduction and waste
time. At this writing, three additional states—
management industries, and the EPA’s
Massachusetts, New Jersey and Rhode
Energy Star and Water Sense certification
Island—are actively considering similar
and labeling initiatives long have helped
policies. All state-based EERS include end-use
encourage consumers to use products that
energy savings improvements.91
save energy and water. And for almost two
California Vehicle Emissions Standards:
decades, the U.S. Department of Commerce
Fourteen states—Arizona, Connecticut,
has helped manufacturers improve efficiency,
Florida, Maine, Maryland, Massachusetts,
reduce waste and develop clean technologies
New Jersey, New Mexico, New York, Oregon,
and products.
Pennsylvania, Rhode Island, Vermont and
In the past three years, federal policy makers
Washington—and the District of Columbia
have taken major steps to drive the clean
have adopted California’s vehicle emissions
energy economy forward. In 2007, President
standards, which require automakers to
George W. Bush signed into law the first
improve the fuel efficiency new cars and light
increase in fuel efficiency standards for cars
trucks that resulting in a 30 percent reduction
and light trucks in more than 30 years, as
in carbon emissions by 2016. On May 19,
part of the Energy Independence and Security
2009, President Obama announced that the
Act.92 This feat was unimaginable to many
Administration would establish the first-ever
Congressional observers when just two years
national limits on vehicle emissions that
earlier, 67 members of the Senate opposed
match California’s while raising fleet-wide
any increase in fuel efficiency. The legislation
fuel efficiency standards to approximately
enacted in 2007 was supported by a majority
35.5 miles per gallon by 2016.
of Republicans and Democrats, the United
Eleven states—Arkansas, Alabama, Georgia,
Auto Workers union, environmentalists
Kentucky, Louisiana, Mississippi, Nebraska,
and 89 percent of American voters. The
Oklahoma, South Carolina, Tennessee and
Energy Independence and Security Act is
expected to save 1.1 million barrels of oil
The Clean Energy Economy
39
P U B L I C P O L I C Y A N D T H E F U T U R E O F T H E C L E A N E N E R G Y E C O N O M Y
a day, save consumers $25 billion at the
nation’s electricity grid, $2 billion for
pump and achieve reductions in greenhouse
advanced battery technology, more than $6
gas emissions equal to taking more than 28
billion for state and local efforts to achieve
million cars off the road.93
energy efficiency, $5 billion for weatherization
of low-income homes, $500 million for job
Enacted in February 2009, ARRA—the federal
training to help workers participate in the
stimulus bill—includes an array of provisions
clean energy economy, and $300 million to
to spur clean energy generation and energy
purchase thousands of new, fuel-efficient
efficiency businesses, jobs and investments.
vehicles for the federal fleet from American
Among the almost $85 billion the package
auto companies (Exhibit 17).
allocates to energy- and transportation-related
spending, about $21 billion is dedicated to
extending tax incentives for wind, solar and
Measuring Policy Effectiveness
other renewable energy manufacturers.
How effective has each of these policy
ARRA also provides more than $30 billion
approaches been in generating jobs,
for direct spending on clean energy programs,
businesses and investments in the clean
including $11 billion to modernize the
energy economy? Given that most of the
policy actions we examined were instituted
in the last three years, there was not sufficient
time between then and 2007, the year of
EXHIBIT 17
the latest available jobs data, to analyze to
THE AMERICAN RECOVERY AND
REINVESTMENT ACT OF 2009
what degree each has driven the clean energy
Energy- and transportation-
economy to date. But our data do suggest a
related spending
relationship. For instance, of the 18 states
that have both renewable portfolio and energy
The federal stimulus bill enacted in February 2009 includes an
array of provisions to spur clean energy generation and energy
efficiency standards in place, 11 states (61
e ciency businesses, jobs and investments. A total of $84.8
percent) had more jobs in the clean energy
billion has been set aside for energy- and transportation- related
economy than the national average. Similarly,
spending. Amounts are in thousands.
in 12 of those 18 states, clean energy jobs
AREA OF INVESTMENT
TOTAL INVESTMENT
made up a larger share of all jobs when
Energy e ciency and conservation
$16,470,000
compared to the U.S. average. Additionally, a
Improving the grid
$11,000,000
number of venture capitalists, business leaders
Energy research
$7,900,000
Clean energy generation
$6,000,000
and policy makers we interviewed (see, e.g.,
Jobs training
$500,000
profiles in this report of clean energy company
Vehicle spending
$2,600,000
Gamesa, venture capitalist Will Coleman
Transportation spending
$18,400,000
and Texas State Representative Warren
Climate science research
$570,000
Tax credits for renewable energy
Chisum) cited state policies such as renewable
and energy e ciency
$19,668,000
portfolio standards as important factors in
Tax credits for alternative fuel pumps
$54,000
driving investments, attracting companies and
Investment credits in energy generation
growing new industries and jobs because they
and energy e ciency technologies
$1,600,000
help create market demand for clean energy
Total
$84,762,000
technologies, products and services.
SOURCE: Pew Center on Global Climate Change, Key Provisions:
American Recovery and Reinvestment Act, March 2009 (updated April 16, 2009),
http://www.pewclimate.org/docUploads/Pew-Summary-ARRA-Key-Provisions.pdf
(accessed April 28, 2009).
40
The Clean Energy Economy | The Pew Charitable Trusts
P U B L I C P O L I C Y A N D T H E F U T U R E O F T H E C L E A N E N E R G Y E C O N O M Y
With significant state and federal policy
derived from renewable sources by 2025; and
actions now in place or proposed—and our
an energy efficiency resource standard that
baseline count in hand—Pew will conduct
would require saving 15 percent of electricity
follow-up research to assess how these
and 10 percent of natural gas by 2020.94 At
measures are likely to affect the growth of U.S.
this writing, the U.S. House of Representatives
jobs, businesses and investments in the clean
is considering the American Clean Energy
energy economy moving forward.
and Security Act, a proposal that would
limit overall greenhouse gas emissions and
Need for Comprehensive, Economy-wide
distribute tradable federal allowances for
Clean Energy Plan
each ton of pollution emitted. The market-
based program would apply to electric
Given America’s need to create new and
utilities, oil companies and other entities that
enduring jobs while conserving natural
produce more than 25,000 tons of carbon
resources and reducing carbon emissions,
dioxide each year. The number of allowances
federal leaders are deliberating additional
would diminish over time, and the legislation
measures to spur the clean energy economy.
would set a goal to reduce emissions to 83
percent below 2005 levels by 2050.95 The
President Obama has signaled his support
bill would increase significantly the amount
for a federal market-based system to reduce
of energy derived from low- or zero-carbon
greenhouse gas emissions by at least 80
sources, including renewables—meaning
percent by 2050; a national renewable
that businesses and jobs would be generated
portfolio standard that would require that
to develop clean energy sources to meet
25 percent of the nation’s energy supply be
the demand.
The Clean Energy Economy
41
Conclusion
Pew’s first-of-its-kind analysis shows that the
such as financial incentives for clean energy
clean energy economy, still in its infancy, is
generation and energy efficiency, renewable
emerging as a vital component of America’s
energy and energy efficiency standards, and
economic landscape. Across the country,
laws to reduce vehicle emissions.
jobs and businesses in the clean energy
economy are being driven by consumer
Through ARRA, the federal government has
demand, venture capital infusions by private-
made an extraordinary investment that will
sector investors eager to capitalize on new
give these and other efforts a significant boost.
market opportunities, and policy reforms
But to realize the clean energy economy’s full
by federal and state lawmakers who want to
potential, the nation needs a comprehensive,
spur economic growth while sustaining the
economy-wide energy plan. President Obama
environment.
has expressed his support for a federal
market-based system that would substantially
Today, every state has a piece of the clean
reduce greenhouse gas emissions, and national
energy economy. But there will be winners
standards that would help America draw more
and losers going forward. Policy makers
of its energy supply from clean, renewable
who act quickly and effectively could see
sources and achieve greater energy efficiency.
their states flourish, while others may lose
Those federal and state policies, together with
opportunities for new jobs, businesses and
continued private-sector support, will position
investments. State leaders recognize this, and
the United States as a leader in the global
a growing number are pursuing measures
clean energy economy.
42
The Clean Energy Economy | The Pew Charitable Trusts
A P P E N D I X A
Exhibit A1. U.S. Clean Energy Economy Segments
The clean energy economy has 16 segments (highlighted in green) that fall into five categories (highlighted in dark blue).
Subsegment
Examples of Occupations
CLEAN ENERGY
Energy consulting
Electrical engineering technicians
Energy management (software, services, devices)
Computer systems analysts
Biomass (hydrogen, other, waste-to-energy)
Power plant operations technicians, process engineers
Geothermal (geothermal drilling, generation, development, hardware)
Operating engineers and other construction equipment operators,
drilling engineers (Geothermal)
Hydro
Plumbers, power plant operators
Marine and tidal
Mechanical engineering technicians
Hydrogen
Mechanical engineering technicians, chemists
Multiple
Solar and wind system installers
gy ation Other (combined heat/power, hydrogen production, natural gas, on-site systems, Plumbers, electrical engineers
E
ner Gener waste heat, renewable energy providers)
Research and testing
Electrical engineers
Solar (material feedstock supplier, PV: thin film, PV: polysilicon, concentrated PV,
Photonics engineers, solar power plant technicians
BIPV, solar thermal, solar installers and contractors, equipment sales and distribu-
tion)
Co-generation
Mechanical engineering technicians, boiler process engineers
Accessory equipment and controls (solar, wind)
Electricians
Other generation equipment
Mechanical engineering technicians
Wind (consulting, water pumping systems, wind plant operators and developers,
Electricians, wind turbine service technicians
turbine and tower manufacturing, equipment sales and distribution)
Cable and equipment
Electrical power-line installers and repairers
gy
Services (power monitoring and metering, power quality and testing)
Electricians, power distributors and dispatchers
E
ner
T
r
ansmission Transmission (sensors and controls, Smart Grid)
Electrical and electronic equipment assemblers
Advanced batteries (Li-Ion, NiMH, advanced PB-acid, charging and management,
Electrical and electronic engineering technicians
nickel zinc, other technologies, thin film, ultra capacitors, multiple)
gy
Battery components and accessories
Electrical and electronic equipment assemblers, tool and die makers
age
E
ner Stor Fuel cells (methanol, PEM, solid oxide, systems Integrators, zinc air)
Electro-mechanical technicians
Hybrid systems (flywheels, heat storage, hydrogen storage)
Mechanical engineers
Uninterruptible power supply
Electrical engineers
ENERGY EFFICIENCY
Machinery (geothermal heating and cooling, HVAC-R, boilers, water heating,
Heating and air conditioning mechanics and installers, thermal
efficient motors)
engineers
Energy conservation consultant
Energy auditors
Energy conservation software
Network systems and data communications analysts
y Energy conservation products
Electrical drafters, weatherization technicians/installers
gy
Glass
Press operators
E
ner Efficienc Lighting (CFL, solid state lighting, smart lighting systems, ballasts and controls)
Electricians; lighting design engineer; mixing and blending machine
setters, operators, tenders (e.g. CFL/LED manufacturing)
Meters and measuring devices (wireless)
Electrical engineering technicians
Energy research
Electrical engineers
Solar appliances and devices (solar cooker, solar heating, lighting)
Electrical and electronic equipment assemblers
ENVIRONMENTALLY FRIENDLY PRODUCTION
Alternative fuels (fueling Infrastructure, biodiesel, ethanol, hydrogen)
Fuel system specialists
tion
ta
Logistics (fleet tracking, traffic monitoring software)
Operations managers, logistic engineers
Motor vehicles and equipment (electric bicycles and scooters, electric and hybrid Electromechanical equipment assemblers, engine and chassis test
T
r
anspor
vehicles, logistics/public transit vehicles, natural gas vehicles, diesel technology,
engineers, engine and other machine assemblers
vehicle components/engines, water transport, catalytic converters)
Advanced packaging (containers, packing)
Materials scientists
Industrial surface cleaning
Lab technicians
turing/
Process management (construction/fabrication, process efficiency, resource
Mechanical engineering technicians, robotics technicians
Industrial utilization, toxin/waste minimization)
Manufac
Monitoring and control (sensors, software, systems)
Systems analysts
The Clean Energy Economy
43
A P P E N D I X A
Building materials (e.g., alternative cement)
Operating engineers and other construction equipment operators
Design and construction (nonresidential architectural and engineering services,
Architect, roofer, construction and building inspectors (e.g. LEED
tion
uc
nonresidential building construction, residential architectural and engineering
Certification)
services, residential building construction, software)
C
onstr
Site management (deconstruction)
Environmental protection technicians
Real estate and development
Construction and building inspectors
Aquaculture (farms, health and yield)
Environmental science technicians
e
Land management (crop yield, precision agriculture, smart Irrigation, sustainable
Irrigation system installers, precision agriculture technicians
ultur
forestry)
A
gric
Supplies and materials (alternative pest control, fertilizer)
Environmental science technicians
Agribusiness consultant
Agricultural sustainability consultants
Biofuel (distillation and distribution)
Installers of industrial equipment, fuel distillers and distributors
gy tion Coal gasification and pyrolysis
Geologists to assess basins for CO2 storage, chemists creating catalysts/
E
ner
enzymes to remove CO2 from coal power generation, power plant
P
r
oduc
operators that operate equipment that transports CO2
Bio (bioplastics, advanced processes, biodegradable products, catalysts)
Mixing and blending machine setters, operators and tenders
Chemical (coatings, composites, polymer)
Coating, painting, and spraying machine setters, operators and tenders
t
erials
Nano (catalysts and additives, detectors and sensors, gels and coatings, lubricants
Laboratory technicians
Ma
and films, powders)
Other (adhesives, ceramics, electro textiles)
Laboratory technicians
CONSERVATION AND POLLUTION MITIGATION
Emissions monitoring and control (air quality, chemical sensors, carbon dioxide
Environmental science technicians
sensors, wireless sensors, sorbents, measurement and testing, software/systems)
t
Environmental consulting (environmental engineering, management and public
Environmental sustainability consultants, environmental compliance
onmen relations, permitting, regulation and documentation, testing and certification,
coordinators
A
ir and
sustainable business/development consultant)
E
n
vir
Environmental remediation (remediation equipment, ocean restoration)
Environmental engineering technicians
Cleanup/safety (EHS and ERM, hazardous waste/toxins control, leak detection)
Hazardous materials removal workers, industrial hygienists
Consulting
Materials scientists
east Recycling (Waste paper, paperboard and cloth materials, waste materials, metal, Refuse and recyclable material collectors, solids control technicians
y
cling W plastics and rubber scrap, bottles, automotive wrecking and recovery,
Rec and oil and lubricants, electronic waste, recycling machinery manufacturing)
Waste treatment (environmental disposal, hazmat and plasma destruction)
Water and liquid waste treatment plant and system operators
Consulting
Environmental science and protection technicians, including health;
wetlands environmental biologists
ater Pumps
Mechanical engineering technicians
ew Research and testing
Geological science technicians
a
t
er and
W astW Water conservation (recycling and management, metering and control)
Soil and water conservationists
Water and wastewater treatment (contaminate detection, desalination, filtration
Chemical laboratory technicians, groundwater engineers
and purification, plant and equipment, biological)
TRAINING AND SUPPORT
Legal services
Lawyers, paralegals and legal assistants
es Marketing/public relations
Public relations specialists
vic
B
usiness Ser Green firm business portal
Marketing analysts
Staffing services
Human resources assistants
t Project financing (e.g., solar)
Financial accountants
e/
Project insurance
Credit risk analysts
F
inanc vestmen Venture capital/private equity
Investment bankers
In Emissions trading and offsets (carbon/emissions)
Statistical assistants, carbon credit traders
Alternative fuels (hydrogen)
Biological technicians
Geothermal
Geological sample test technicians
Public education, job training
Vocational education teachers in postsecondary institutions, grant
writers, environmental education specialists
y
ch acoc Solar
Heating and air conditioning mechanics and installers
dv Wind
Resear
Mechanical engineering technicians
and A Energy generation
Electrical engineering technicians
Energy storage
Chemical laboratory technicians, fuel cell engineers
Green building
Cost estimators
Transportation
Mechanical engineering technicians
44
The Clean Energy Economy | The Pew Charitable Trusts
A P P E N D I X B
Methodology
This report counts jobs, companies, patents and venture capital investments that are part of the
clean energy economy across all 50 states and the District of Columbia. We define the clean
energy economy as one that generates jobs, businesses and investments while expanding clean
energy production, increasing energy efficiency, reducing greenhouse gas emissions, waste and
pollution, and conserving water and other natural resources.
Pew researchers partnered with Collaborative Economics (CEI), a public policy research firm that
has produced the California Green Innovation Index for the past two years. The Index comprises a
series of reports that examine the intersection of economic growth and environmental policy in
California; a central component of this work tracks the growth of businesses, jobs, investments
and patents that make up the state’s clean energy economy. The series is published by Next 10,
a nonprofit research and advocacy group based in California.
For this study, Pew and CEI applied CEI’s original methodology for assessing California to all
50 states and the District of Columbia.
Counting Jobs and Businesses
There are no perfect data sets with which to count jobs or businesses in the clean energy
economy, and accurately counting this emerging economic activity is difficult. The U.S. Bureau
of Labor Statistics (BLS) and the U.S. Census of Manufacturers are valuable resources for
analyzing well-established industries, but these data do not classify jobs in the “clean energy
economy” as a separate sector. As a result, Pew used micro-level establishment data to analyze
the clean energy economy across the 50 states and the District of Columbia. For the purpose of
this analysis, we count these businesses as those that produce or provide products and services
that leverage renewable energy sources, conserve energy and natural resources, reduce pollution
and recycle waste.
Public data on industries and employment are insufficient for examining this growing area of
economic activity. Existing industry classification codes provide no straightforward industrial
classification of jobs and businesses in the clean energy economy. Therefore, building on prior
research of the clean energy economy, Pew’s researchers constructed a database, using multiple
sources and leveraging advanced Internet search technology.
As a first step in building the database, Pew’s researchers identified companies receiving venture
capital based on information provided by two membership organizations—Cleantech Group,
LLC, and New Energy Finance—that track investment in the environment and clean energy
technology. In addition, information about companies in the clean energy economy was gathered
from industry associations and green business directories, press coverage, published articles,
and databases of government incentive programs for renewable energy. As part of the process of
The Clean Energy Economy
45
A P P E N D I X B
identifying companies, we examined the Standard Industrial Classification (SIC) codes associated
with each of these companies and mined the National Establishment Time Series database for
other business units that could also be classified as a company in the clean energy economy.
National Establishment Time Series (NETS) Database. As mentioned above, we ran our list of
companies through the NETS database published by Walls & Associates. NETS is a time series
database based on Dun & Bradstreet (D&B) data, which are intended to cover the universe
of business establishments—serving as a Yellow Pages of sorts for all known U.S. businesses.
Our team analyzed the broad range of companies in the clean energy economy, allowing our
researchers to identify similar and related companies that provide the clean energy economy’s
supply chain (e.g., manufacturers and suppliers of LED lighting), distribution networks (e.g.,
warehouses) and support activities (e.g., marketing professionals, lawyers) that deliver the
products and services that respond to consumer demand. We limited our analysis to a set of core
companies and jobs in the clean energy economy because it is difficult to separate the limited
number of these jobs that reside in traditional companies (e.g., technicians working in utility
companies to install energy monitoring devices in homes; a sustainability officer in Google, Inc.,
or another company whose job it is to help “green” the company’s office space and operations).
Because our analysis focused on identifying businesses in the clean energy economy and the jobs
associated with these specific firms, Pew’s count of these jobs is conservative.
Pew’s research partner, CEI, developed the database, and the resulting business units fell into
three categories: 1) businesses that fall into SIC codes that are completely part of the clean
energy economy (e.g., energy conservation equipment); 2) businesses that fall into SIC codes
that are partially green (e.g., plumbing contractors, electricians); and 3) businesses that are active
in some area of the clean energy economy but have an SIC code that primarily represents a much
broader scope of activities than clean energy (e.g., commercial nonphysical research).
The process resulted in two sets of eight-digit SIC codes: 1) SIC codes that were fully part of
the clean energy economy (Exhibit B-1), and 2) SIC codes where a portion of the business units
in that code were part of the clean energy economy. This second set of SIC codes required the
additional process of identifying the companies in the clean energy economy through an Internet
search platform using sets of keyword searches (see section on QL2 Search Platform below). The
SIC codes for businesses units that are completely part of the clean energy economy make up
about 60 percent of all companies and jobs in this emerging sector.
Pew relied on NETS to track trends in business growth from 1998 to 2007 across all 50 states
and the District of Columbia. NETS includes an eight-digit SIC code, which was developed
from the four-digit SIC code supported by the U.S. government prior to the six-digit North
American Industry Classification System (NAICS)—the current coding system used by the U.S.
government and BLS. The eight-digit SIC code allows far greater detail than NAICS to classify
businesses and count the jobs associated with those companies.96
Pew researchers chose to use NETS based on its strengths relative to other datasets—providing
the most detailed and comprehensive set of business unit information necessary for identifying
business activities in the clean energy economy. D&B has established a sophisticated quality
46
The Clean Energy Economy | The Pew Charitable Trusts
A P P E N D I X B
EXHIBIT B-1: Establishments in the U.S. Clean Energy Economy
Standard Industrial Classification Codes that are fully part of the clean energy economy.
8-digit SIC
Description
8-digit SIC
Description
1810103
Mats, preseeded: soil erosion, growing of
38220300
Thermostats and other environmental sensors
8510102
Reforestation services
38229900
Environmental controls, nec
13110201
Coal gasification
38229905
Energy cutoff controls, residential or commercial types
13110203
Coal pyrolysis
38269907
Environmental testing equipment
16290505
Waste water and sewage treatment plant construction
38290218
Solarimeters
17110403
Solar energy contractor
49119908
Hydro electric power generation
17310202
Energy management controls
49520000
Sewerage systems
17310203
Environmental system control installation
49539905
Recycling, waste materials
17420204
Solar reflecting insulation film
49539907
Sewage treatment facility
17819901
Geothermal drilling
49590300
Toxic or hazardous waste cleanup
17969906
Pollution control equipment installation
49590301
Oil spill cleanup
17990210
Weather stripping
49590302
Environmental cleanup services
28210401
Carbohydrate plastics
50399912
Soil erosion control fabrics
28210407
Soybean plastics
50740208
Heating equipment and panels, solar
28690104
Ethyl alcohol, ethanol
50750103
Air pollution control equipment and supplies
28739901
Fertilizers: natural (organic), except compost
50840706
Pollution control equipment, air (environmental)
28759901
Compost
50840707
Pollution control equipment, water (environmental)
28999913
Desalter kits, sea water
50849914
Recycling machinery and equipment
32110302
Insulating glass, sealed units
50930000
Scrap and waste materials (all related codes)
32310401
Insulating glass: made from purchased glass
52110300
Insulation and energy conservation products
34339904
Solar heaters and collectors
52110301
Energy conservation products
34430304
Economizers (boilers)
52110303
Solar heating equipment
35110207
Wheels, water
73890201
Air pollution measuring service
35239906
Windmills for pumping water, agricultural
73899931
Meter readers, remote
35590403
Desalination equipment
76990304
Thermostat repair
35599937
Recycling machinery
81110208
Environmental law
35890300
Sewage and water treatment equipment
86419903
Environmental protection organization
35890301
Sewage treatment equipment
87110101
Pollution control engineering
35890306
Water treatment equipment, industrial
87110403
Heating and ventilation engineering
36219909
Windmills, electric generating
87119906
Energy conservation engineering
36290102
Electrochemical generators (fuel cells)
87310302
Environmental research
36740305
Photovoltaic devices, solid state
87340300
Pollution testing
36740306
Solar cells
87349911
Water testing laboratory
36749901
Fuel cells, solid state
87449904
Environmental remediation
37110104
Cars, electric, assembly of
87489904
Energy conservation consultant
38220000
Environmental controls
87489905
Environmental consultant
38220206
Temperature controls, automatic
89990703
Natural resource preservation service
SOURCE: Pew Charitable Trusts, 2009; analysis by Collaborative Economics, Inc.
The Clean Energy Economy
47
A P P E N D I X B
control system and engages in extensive quality and consistency checks. Access to alternative
data sources collected by federal and state government agencies that can be used to study some
features of businesses and employment dynamics, such as BLS or the U.S. Census, is highly
restricted because of confidentiality and requires a long and complex application and approval
process. In contrast, NETS data are accessible and no confidentiality restrictions are imposed on
users. And unlike public industry data, NETS covers companies with and without employees.
NETS has been criticized in earlier research for both overstating total employment and for
undercounting new businesses.97 Its higher jobs numbers result from its better coverage of
small businesses and the inclusion of small business owners in the count of employees; in fact,
the NETS numbers are highly correlated with alternative data sources including the Quarterly
Census of Employment and Wages, the Current Employment Statistics and the Size of Business
data.98 In other words, the NETS numbers describe the same trends as other data sources. And
while NETS is sometimes slow to detect new businesses, it revises the establishment and jobs
numbers in subsequent years’ data, which corrects any previous undercount of new businesses.
QL2 Search Platform. To carry out a comprehensive Internet search of businesses in the clean
energy economy across the 50 states, CEI designed the parameters of an Internet search
infrastructure developed by QL2, a Seattle-based software engineering firm. The Internet
search platform, created from a detailed set of search criteria and filters, allowed Pew to more
comprehensively mine the Internet-based sources, link the results to NETS and verify the
information collected. We used the QL2 platform to conduct an Internet search for company
Web sites and to verify that these businesses were engaged in the clean energy economy, based
on our definition. If a company did not have a Web site, it was not included in our final count
of jobs and businesses because we were unable to systematically verify its clean energy economic
activities.99
After the NETS and QL2 processes were complete, a team of analysts manually double checked
the validity of the 50-state data.
Categories of Clean Energy Economy Jobs and Businesses. As part of the Internet and NETS-mining
processes using the QL2 platform, business establishments were grouped in 16 segments:100
energy generation; energy infrastructure; energy storage; energy efficiency; air and environment;
recycling and waste; water and wastewater; agriculture; research and advocacy; business services;
finance and investment; advanced materials; energy production; clean building; transportation;
and manufacturing and industrial.
We then converted these 16 segments into five thematic categories for capturing and
organizing clean energy economy businesses and jobs: (1) Clean Energy; (2) Energy Efficiency;
(3) Environmentally Friendly Production; (4) Conservation and Pollution Mitigation; and
(5) Training and Support.
While specific jobs and businesses will change—for example, a company that supplies hybrid
diesel engines for buses may supply a fundamentally different type of engine a decade from
now—these five sectors of the clean energy economy should remain constant.
48
The Clean Energy Economy | The Pew Charitable Trusts
A P P E N D I X B
Tracking Investments and Patent Registrations
Venture capital investments and patent registrations reveal where innovation in the clean energy
economy is taking place and where regional specializations are emerging. Venture capital
investment data were provided by the Cleantech Group™, LLC, and tracked investments by
industry segment.101 Working with 1790 Analytics, a research firm that specializes in intellectual
property evaluation, Pew’s researchers developed search criteria for tracking patent registrations
in clean technology over time. 1790 Analytics processes U.S. Patent and Trade Office (USPTO)
data on a weekly basis. Using terms related to clean technologies, 1790 Analytics provided the
data for new patent registrations related to solar energy, wind energy, batteries, fuel cells and
hybrid systems. Both patent and venture capital data were collected from 1999 to 2008.
State Policies
Both the report and our supplemental fact sheets for each of the 50 states and the District of
Columbia highlight the strengths of each state’s clean energy economy—jobs, companies and
investments. Pew’s researchers also examined the public policies likely to drive future clean
energy economy growth in each state. We looked at states’ provision of financial incentives,
participation in regional initiatives, implementation of renewable portfolio standards and energy
efficiency resource standards, and adoption of California’s vehicle emissions standards.
Pew’s researchers obtained information about state renewable energy and energy efficiency
financial incentives such as tax credits and deductions, bonds, grants, loans and rebate programs
from the Database of State Incentives for Renewables and Efficiency, a project sponsored by the
North Carolina Solar Center and the Interstate Renewable Energy Council and funded by the
U.S. Department of Energy.102
Pew’s researchers tracked state participation in the three active regional initiatives—
(1) Regional Greenhouse Gas Initiative (RGGI); (2) Midwestern Greenhouse Gas Reduction
Accord (MGGRA); and (3) Western Climate Initiative (WCI)—by consulting the Pew Center
on Global Climate Change’s Web site (http://www.pewclimate.org/what_s_being_done/ in_the_
states/regional_initiatives.cfm). Researchers then confirmed each state’s participation
by reviewing state governors’ press releases from each initiative’s Web site:
(1) RGGI - http://www.rggi.org; (2) MGGRA - http://www.midwesternaccord.org/; and
(3) WCI - http://www.westernclimateinitiative.org/. We also noted which states had signed
on as “observers” to the regional initiatives.
To draw attention to states that had mandatory renewable portfolio standards (RPS) in place,
we consulted the Pew Center on Global Climate Change’s Web site (http://www.pewclimate.org/
what_s_being_done/in_the_states/rps.cfm). We verified the
states’ RPS policies using the U.S. Environmental Protection Agency’s (EPA) Web site (http://
www.epa.gov/solar/energy-programs/state-and-local/supply_actions.html#rps). The EPA credits
34 states with RPS policies, including states with voluntary standards or RPS goals; Pew’s analysis
does not count those latter states. To identify states that have or are considering adopting energy
The Clean Energy Economy
49
A P P E N D I X B
efficiency resource standards, we consulted a March 2009 report by the American Council
for an Energy-Efficient Economy (http://aceee.org/pubs/e091.pdf?CFID=3657226&CFTO
KEN=86100118).
Other Studies
Several organizations recently have published reports about the growth in “green jobs” and the
“green economy.” Among them (in order of publication date):
l Center for American Progress and the Political Economic Research Institute at the
University of Massachusetts Amherst (CAP/PERI), Job Opportunities for the Green Economy:
A State-by-State Picture of Occupations that Gain from Green Investments (June 2008).
l
Center for American Progress and the Political Economic Research Institute at the
University of Massachusetts Amherst (CAP/PERI), Green Recovery: A Program to Create
Good Jobs and Start Building a Low-Carbon Economy (September 2008).
l
U.S. Conference of Mayors and Global Insight, Current and Potential Green Jobs in the
U.S. Economy (October 2008).
l
Gary Gereffi, Kristen Dubay and Marcy Lowe, Manufacturing Climate Solutions:
Carbon-Reducing Technologies and U.S. Jobs, Center on Globalization, Governance &
Competitiveness, Duke University (November 2008).
Three principal differences distinguish Pew’s report from these and other, similar efforts. First,
previous efforts looked only at jobs and either provided numbers for a specific industry, such as
solar, or estimates generated by statistical modeling; our report analyzes jobs at the business-unit
level, businesses, venture capital investments and patent registrations over time. By examining
different aspects of the clean energy economy—not just jobs—Pew highlights investments being
made today that will drive growth in the future. Second, using jobs numbers based on NETS
data and a sophisticated software platform that enabled Pew to search and verify the activities
of firms, we count actual jobs and businesses in the clean energy economy, rather than relying
on estimates. The businesses included in the database are based on evidence of actual business
activities. Finally, previous efforts focused on energy generation and efficiency; we also counted
jobs and businesses that enable the United States to manage water and other finite natural
resources more effectively, to mitigate emissions of greenhouse gases and other pollutants that
result from the continued use of fossil fuels, and to recycle materials and resources to help
businesses reduce their carbon footprint.
50
The Clean Energy Economy | The Pew Charitable Trusts
A P P E N D I X C
Exhibit C1. Businesses in the U.S. Clean Energy Economy, 1998-2007
State
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Alabama
765
764
768
789
819
815
806
782
804
799
Alaska
327
331
333
345
367
367
360
359
350
350
Arizona
1,009
1,027
1,039
1,047
1,093
1,099
1,088
1,122
1,139
1,123
Arkansas
434
424
416
420
440
435
444
440
445
448
California
8,906
8,971
8,899
9,248
9,848
10,066
10,213
10,195
10,348
10,209
Colorado
1,463
1,468
1,505
1,564
1,676
1,706
1,699
1,682
1,760
1,778
Connecticut
799
804
780
806
801
818
825
829
864
857
Delaware
204
205
207
213
220
213
207
205
213
211
District of Columbia
243
244
253
263
280
274
286
291
295
280
Florida
3,121
3,131
3,121
3,214
3,582
3,643
3,663
3,664
3,801
3,831
Georgia
1,483
1,533
1,536
1,576
1,690
1,702
1,688
1,679
1,824
1,827
Hawaii
288
294
291
309
328
333
334
333
355
356
Idaho
365
376
387
410
436
434
436
437
434
428
Illinois
2,111
2,043
2,008
2,038
2,125
2,133
2,134
2,131
2,170
2,176
Indiana
1,135
1,107
1,101
1,144
1,226
1,231
1,225
1,214
1,259
1,268
Iowa
637
634
641
670
730
716
708
699
736
729
Kansas
570
563
570
577
588
595
581
564
596
591
Kentucky
697
679
675
701
722
724
718
722
750
778
Louisiana
949
947
933
949
1,007
993
1,003
975
994
995
Maine
691
710
703
703
721
733
728
736
743
725
Maryland
1,044
1,042
1,028
1,040
1,134
1,104
1,122
1,134
1,162
1,145
Massachusetts
1,819
1,773
1,753
1,777
1,836
1,852
1,842
1,903
1,921
1,912
Michigan
1,858
1,808
1,788
1,811
1,906
1,890
1,882
1,897
1,952
1,932
Minnesota
1,120
1,106
1,116
1,107
1,189
1,235
1,247
1,205
1,208
1,206
Mississippi
387
387
394
395
434
439
437
449
447
454
Missouri
1,026
1,020
987
986
1,036
1,023
1,022
1,028
1,057
1,062
Montana
311
316
328
355
365
380
382
405
409
408
Nebraska
312
312
317
322
332
359
348
353
359
368
Nevada
345
347
350
384
465
480
489
502
521
511
New Hampshire
414
418
414
416
456
470
470
453
462
465
New Jersey
2,157
2,127
2,078
2,093
2,164
2,121
2,083
2,045
2,026
2,031
New Mexico
502
525
515
544
557
557
559
570
581
577
New York
3,258
3,195
3,150
3,186
3,473
3,481
3,440
3,320
3,304
3,323
North Carolina
1,449
1,493
1,518
1,563
1,652
1,641
1,665
1,705
1,794
1,783
North Dakota
124
122
123
132
142
144
148
141
142
137
Ohio
2,388
2,342
2,344
2,414
2,503
2,512
2,469
2,476
2,514
2,513
Oklahoma
726
724
703
694
724
712
726
715
712
693
Oregon
1,323
1,356
1,383
1,410
1,508
1,531
1,553
1,569
1,608
1,613
Pennsylvania
2,893
2,893
2,879
2,890
3,223
3,222
3,135
2,929
2,939
2,934
Rhode Island
234
234
232
242
252
256
250
249
243
237
South Carolina
775
789
785
806
849
870
874
872
889
884
South Dakota
122
121
129
131
144
148
155
157
164
169
Tennessee
955
970
974
1,001
1,034
1,026
1,039
1,062
1,080
1,090
Texas
4,247
4,309
4,346
4,473
4,801
4,802
4,806
4,773
4,819
4,802
Utah
473
478
485
509
587
588
589
562
575
579
Vermont
279
286
281
295
319
319
319
319
317
311
Virginia
1,237
1,251
1,263
1,323
1,413
1,436
1,457
1,451
1,472
1,446
Washington
1,920
2,032
1,992
2,029
2,102
2,082
2,062
2,012
2,022
2,008
West Virginia
348
338
341
350
371
360
352
327
325
332
Wisconsin
1,249
1,245
1,225
1,248
1,291
1,272
1,291
1,299
1,297
1,294
Wyoming
197
212
212
228
251
240
237
234
234
225
U.S. Total
61,689
61,826
61,599
63,140
67,212
67,582
67,596
67,175
68,435
68,203
SOURCE: Pew Charitable Trusts, 2009, based on the National Establishment Time Series Database; analysis by Pew Center on the States and Collaborative Economics.
The Clean Energy Economy
51
A P P E N D I X D
Exhibit D1. Jobs in the U.S. Clean Energy Economy, 1998-2007
State
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Alabama
7,678
7,388
7,640
7,825
8,325
8,089
7,678
7,667
7,678
7,849
Alaska
1,956
1,947
1,930
2,040
2,270
2,310
2,174
2,048
2,043
2,140
Arizona
9,547
9,458
10,050
10,455
10,686
10,841
11,214
11,549
11,463
11,578
Arkansas
4,266
4,353
4,130
4,461
4,491
4,043
4,116
4,040
4,326
4,597
California
116,441
117,610
123,475
125,221
128,832
122,959
120,153
117,114
122,903
125,390
Colorado
14,393
15,804
16,595
17,218
16,903
16,736
15,711
15,547
16,022
17,008
Connecticut
9,484
9,677
8,814
10,715
11,287
10,976
11,248
11,203
10,052
10,147
Delaware
2,424
2,548
2,779
2,775
2,917
2,904
2,314
2,638
2,395
2,368
District of Columbia
4,483
4,306
4,594
5,289
5,608
5,599
5,140
5,254
5,426
5,325
Florida
28,845
29,138
29,254
28,467
30,739
30,292
30,568
29,437
30,527
31,122
Georgia
14,645
14,799
14,623
14,689
15,786
16,207
16,121
16,513
16,243
16,222
Hawaii
1,903
2,064
2,175
2,256
2,396
2,455
2,281
2,303
2,710
2,732
Idaho
1,998
2,252
2,648
2,803
3,447
4,537
4,462
4,141
4,146
4,517
Illinois
29,136
28,773
27,278
27,474
27,662
27,497
27,420
26,820
27,025
28,395
Indiana
14,666
15,467
16,033
16,521
16,823
16,238
16,200
16,338
16,840
17,298
Iowa
6,106
6,272
6,600
6,959
7,157
7,053
6,942
6,999
7,553
7,702
Kansas
5,308
5,262
5,483
6,055
6,444
6,572
6,631
6,993
7,444
8,017
Kentucky
8,465
8,577
8,777
9,187
9,049
9,224
9,330
8,952
9,123
9,308
Louisiana
8,908
9,600
9,762
10,272
10,512
10,491
10,130
10,271
9,984
10,641
Maine
4,888
5,010
5,005
5,006
5,364
5,719
5,827
5,754
5,805
6,000
Maryland
13,224
13,465
13,226
13,240
14,741
13,886
12,632
12,932
12,445
12,908
Massachusetts
25,580
24,604
23,842
24,057
24,742
25,220
24,444
24,630
26,381
26,678
Michigan
20,489
20,385
21,546
23,064
23,328
22,068
21,618
21,706
22,185
22,674
Minnesota
17,868
18,037
18,696
18,303
20,095
20,660
20,694
18,947
18,764
19,994
Mississippi
2,564
2,591
2,618
2,848
3,028
2,911
2,926
3,115
3,060
3,200
Missouri
11,116
12,494
12,472
12,959
13,132
12,360
12,240
11,501
11,525
11,714
Montana
2,151
2,158
2,166
2,255
2,173
2,083
1,891
1,899
2,086
2,155
Nebraska
2,537
2,639
2,768
2,758
3,127
3,347
3,262
5,403
5,391
5,292
Nevada
2,826
2,899
2,582
2,667
3,056
3,112
2,933
2,961
3,347
3,641
New Hampshire
3,950
3,882
3,478
3,368
3,887
3,850
3,741
3,959
4,045
4,029
New Jersey
28,097
27,555
27,412
27,917
28,658
27,283
25,917
25,146
25,048
25,397
New Mexico
3,208
3,358
3,443
3,896
4,165
4,174
4,238
4,247
4,254
4,815
New York
35,028
35,849
37,606
37,861
39,296
37,774
36,774
34,044
34,016
34,363
North Carolina
14,742
14,771
15,832
16,012
16,176
16,501
16,305
17,026
16,929
16,997
North Dakota
1,613
1,814
1,803
1,821
1,875
2,009
1,955
1,909
2,099
2,112
Ohio
32,874
32,902
33,413
35,882
37,294
34,788
34,349
34,705
35,513
35,267
Oklahoma
5,119
5,499
6,238
6,033
6,039
6,036
6,030
5,608
5,633
5,465
Oregon
12,833
13,552
13,910
14,333
14,931
15,678
16,386
19,191
19,010
19,340
Pennsylvania
41,336
46,741
47,767
44,666
46,846
46,018
44,594
39,013
39,047
38,763
Rhode Island
2,311
2,476
2,437
2,879
2,982
2,822
2,800
2,529
2,401
2,328
South Carolina
8,264
8,647
8,777
9,807
10,339
10,655
11,323
11,092
11,291
11,255
South Dakota
846
779
826
913
1,069
1,087
1,200
1,423
1,471
1,636
Tennessee
13,123
15,314
15,704
17,690
16,399
16,546
16,491
16,409
16,594
15,507
Texas
48,199
51,775
51,024
52,063
55,143
51,942
50,825
52,110
55,470
55,646
Utah
5,938
5,100
5,233
5,290
5,047
4,824
4,871
5,170
5,207
5,199
Vermont
1,875
1,854
1,733
1,899
2,029
2,119
2,073
2,133
2,166
2,161
Virginia
15,947
16,256
16,366
16,531
16,656
16,733
16,946
16,639
16,906
16,907
Washington
16,928
18,215
18,405
19,201
19,620
16,990
16,935
16,264
16,384
17,013
West Virginia
3,197
3,064
3,244
3,201
3,432
3,251
3,336
3,086
3,065
3,065
Wisconsin
15,921
16,172
15,881
16,630
16,399
16,302
16,377
15,691
15,929
15,089
Wyoming
907
990
1,072
1,129
1,201
1,202
1,199
1,222
1,351
1,419
U.S. Total
706,151
726,142
739,165
756,861
783,603
764,973
752,965
743,291
758,721
770,385
SOURCE: Pew Charitable Trusts, 2009, based on the National Establishment Time Series Database; analysis by Pew Center on the States and Collaborative Economics.
52
The Clean Energy Economy | The Pew Charitable Trusts
A P P E N D I X E
Exhibit E1. U.S. Clean Energy
Exhibit E2. U.S. Clean Energy
Patents, 1999-2008
Venture Capital, 2006-2008
State
Total Patents, 1999-2008
State
Venture Capital, 2006-2008
Alabama
26
Alabama
$0
Alaska
1
Alaska
$0
Arizona
178
Arizona
$31,105,879
Arkansas
8
Arkansas
$22,844,701
California
1,401
California
$6,580,426,908
Colorado
161
Colorado
$622,400,734
Connecticut
404
Connecticut
$30,050,286
Delaware
43
Delaware
$3,342,057
District of Columbia
9
District of Columbia
$89,877,117
Florida
236
Florida
$116,980,006
Georgia
256
Georgia
$179,685,738
Hawaii
16
Hawaii
$12,303,914
Idaho
73
Idaho
$27,890,265
Illinois
297
Illinois
$108,519,023
Indiana
174
Indiana
$26,000,000
Iowa
46
Iowa
$149,237,274
Kansas
15
Kansas
$13,274,882
Kentucky
17
Kentucky
$0
Louisiana
22
Louisiana
$0
Maine
8
Maine
$0
Maryland
134
Maryland
$323,995,916
Massachusetts
384
Massachusetts
$1,278,461,918
Michigan
749
Michigan
$55,099,376
Minnesota
218
Minnesota
$49,937,944
Mississippi
3
Mississippi
$30,383,955
Missouri
25
Missouri
$24,479,634
Montana
5
Montana
$0
Nebraska
15
Nebraska
$0
Nevada
71
Nevada
$19,804,386
New Hampshire
74
New Hampshire
$66,917,018
New Jersey
248
New Jersey
$282,567,651
New Mexico
95
New Mexico
$147,912,504
New York
909
New York
$209,590,500
North Carolina
179
North Carolina
$82,570,734
North Dakota
5
North Dakota
$0
Ohio
309
Ohio
$74,224,203
Oklahoma
36
Oklahoma
$5,191,978
Oregon
163
Oregon
$70,001,922
Pennsylvania
241
Pennsylvania
$232,897,084
Rhode Island
51
Rhode Island
$22,844,701
South Carolina
49
South Carolina
$0
South Dakota
4
South Dakota
$0
Tennessee
47
Tennessee
$16,328,927
Texas
414
Texas
$716,894,200
Utah
47
Utah
$26,957,250
Vermont
12
Vermont
$53,746,890
Virginia
68
Virginia
$70,828,261
Washington
195
Washington
$635,108,739
West Virginia
14
West Virginia
$5,740,751
Wisconsin
214
Wisconsin
$46,742,521
Wyoming
15
Wyoming
$6,941,813
U.S. Total
8,384
U.S. Total
$12,570,109,562
SOURCE: Pew Charitable Trusts, 2009, based on data from 1790 Analytics;
SOURCE: Pew Charitable Trusts, 2009, based on data from The Cleantech GroupTM LLC;
analysis by Pew Center on the States and Collaborative Economics.
analysis by Pew Center on the States and Collaborative Economics.
The Clean Energy Economy
53
A P P E N D I X F
Nuclear Energy in the
United States
In 2007, there were 574 nuclear energy
U.S. NUCLEAR ENERGY JOBS
establishments in the United States accounting
1998-2007
for a total of 80,242 jobs, including jobs
in power generation, plant and equipment
100,000
–7.9%
production, public administration and nuclear
87,162
consulting.
80,242
80,000
During the past 10 years, the nuclear energy
industry has lost jobs at an average annual rate
60,000
of 0.9 percent. In 2007 jobs in the nuclear
energy industry reached a 10-year low after
40,000
peaking in 1999 with just more than 92,000
total nuclear energy jobs.
20,000
These jobs and establishments are located
‘98
‘99
‘00
‘01
‘02
‘03
‘04
‘05
‘06
‘07
in 46 states and the District of Columbia.
0
Alaska, Hawaii, Montana and North Dakota
SOURCE: Pew Charitable Trusts, 2009, based on the National Establishment Time Series
Database; analysis by Pew Center on the States and Collaborative Economics.
had no jobs in the nuclear energy industry as
of 2007. Delaware, Indiana, Kentucky,
U.S. NUCLEAR
Maine, Oklahoma, Rhode Island, South
ENERGY JOBS
Dakota, Utah and West Virginia all had fewer
than 100 nuclear energy jobs as of 2007.
States with the Most Nuclear
Energy Jobs, 2007
A majority of the jobs in nuclear energy are
Illinois
7,605
concentrated in a small number of states.
New York
6,223
California, Illinois, New York, North Carolina,
Texas
5,839
Maryland, Massachusetts, Pennsylvania, South
California
4,608
Carolina, Texas and Virginia are the 10 states
North Carolina
4,234
Virginia
4,197
with the most jobs in nuclear energy.
Maryland
4,058
Pennsylvania
4,025
South Carolina
3,749
Massachusetts
3,443
SOURCE: Pew Charitable Trusts, 2009,
based on the National Establishment Time
Series Database; analysis by Pew Center
on the States and Collaborative
Economics
54
The Clean Energy Economy | The Pew Charitable Trusts
Endnotes
1 U.S. Bureau of Labor Statistics, Current Employment
prefer the term “clean energy economy,” which reflects the
Statistics, http://www.bls.gov/ces/ (accessed April 16, 2009).
critical focus on developing renewable energy sources that
2 U.S. Bureau of Labor Statistics, Employment Situation
expand market opportunities, strengthen America’s fiscal
Summary, April 3, 2009, http://www.bls.gov/news.release/
health, reduce our nation’s dependence on traditional fossil
empsit.nr0.htm (accessed May 2, 2009).
fuels, and mitigate pollution from global warming.
3 Pew Research Center Poll, May 8, 2008, http://pewresearch.
13 Low-impact hydropower. Low-impact hydropower is hydro-
org/pubs/828/global-warming (accessed April 15, 2009).
electric power generated with fewer environmental impacts; it
4 National Governors Association, Securing a Clean Energy
must meet criteria such as minimally obstructing river flows,
Future: A Call to Action, December 2007, p. 1 http://www.
maintaining water quality, easing fish passage, and protecting
nga.org/Files/pdf/0712SCEFCALLTOACTION.PDF (accessed
the watershed. Such hydropower facilities often operate
May 3, 2009).
using the natural flow of rivers, rather than storing water in
5 Pew Center on Global Climate Change, “Renewable Portfolio
a reservoir and releasing it to create greater currents. See U.S.
Standards (RPS),” http://www.pewclimate.org/what_s_being_
Department of Energy, Energy Efficiency and Renewable
done/in_the_states/rps.cfm (accessed May 19, 2009).
Energy, Federal Energy Management Program; EPA Green
Database of State Incentives for Renewables and Efficiency,
Power Partnership; World Resources Institute, Sustainable
“District of Columbia,” http://dsire.org/incentives/incentive.
Enterprise Program; and Center for Resource Solutions,
cfm?incentiveCode=DC04&re=1&ee=1 (accessed May 19,
Green-e Renewable Energy Certification Program, Guide
2009).
to Purchasing Green Power: Renewable Electricity, Renewable
6 American Council for an Energy-Efficient Economy (ACEEE),
Energy Certificates, and On-Site Renewable Generation,
Laying the Foundation for Implementing a Federal Energy
September 2004, p. 35.
Efficiency Resource Standard, March 2009, http://aceee.org/
Hydrogen fuel cells. As an energy carrier, hydrogen can
pubs/e091.pdf?CFID=3657226&CFTOKEN=86100118
be used to store and deliver clean and renewable energy.
(accessed May 19, 2009).
Hydrogen can be produced from a variety of domestic
7 Pew Center on Global Climate Change, Key Provisions:
reserves including natural gas, coal, wind and solar power.
American Recovery and Reinvestment Act, March 2009
Once extracted, hydrogen gas is combined with oxygen
(updated April 16, 2009), http://www.pewclimate.org/
in fuel cells to create energy. Hydrogen power fuel cells
docUploads/Pew-Summary-ARRA-Key-Provisions.pdf
can meet a spectrum of energy demands, from small-scale
(accessed April 28, 2009).
portable energy used to power private transportation to
8 Michigan Department of Energy, Labor and Economic
large-scale baseload energy generators. See U.S. Department
Growth, “Michigan Fast Facts,” http://www.milmi.org/
of Energy Hydrogen Program, http://www.energy.gov/
(accessed April 28, 2009).
energysources/hydrogen.htm (accessed April 29, 2009).
9 Pew interview with Skip Pruss, director of the Michigan
Marine and tidal. Marine and tidal, also known as
Department of Energy, Labor and Economic Growth,
hydrokinetic, power sources seek to capture energy from
April 3, 2009.
waves, tides, ocean currents and the natural flow of water in
10 Ibid.
rivers as well as marine thermal gradients, without building
11 See Center for American Progress and the Political Economic
new dams or diversions. Emerging technologies seek to
Research Institute at the University of Massachusetts Amherst
capture and convert these sources of kinetic energy into
(CAP/PERI), Job Opportunities for the Green Economy: A State-
renewable power. See U.S. Department of Energy, Energy
by-State Picture of Occupations that Gain from Green Investments
Efficiency and Renewable Energy Program: Wind and
(June 2008) and Green Recovery: A Program to Create Good
Hydropower Technologies, http://www1.eere.energy.gov/
Jobs and Start Building a Low-Carbon Economy (September
windandhydro/hydro_about.html (accessed April 29, 2009).
2008). See also U.S. Conference of Mayors (USCM) and
Geothermal. Geothermal energy harnesses the heat trapped
Global Insight, Current and Potential Green Jobs in the U.S.
below the earth’s immediate surface. Geothermal heat pumps
Economy (October 2008).
can use shallow ground energy (less than 10 feet below
12 Despite the popularity of the term “green economy,” there
the earth’s surface) to direct heat and cool office buildings
has been no consensus to date about what it actually means.
and homes. Large-scale geothermal plants can harness
No government data source counts green businesses or jobs
the steam released even further below the surface to drive
as such, and as a result, the “green economy” is not classified
turbines and generate electric power. See U.S. Department of
as an industry. The “green” label has become so ubiquitous
Energy, Energy Efficiency and Renewable Energy Program:
that it has lost, rather than gained, meaning, focus and value.
Geothermal Technologies Program, http://www1.eere.energy.
A growing number of policy, business and opinion leaders
gov/geothermal/geothermal_basics.html (accessed April 29,
2009).
The Clean Energy Economy
55
14 Small-scale biopower. Our definition and data capture only
“The Global Potential of Bioenergy on Abandoned Agriculture
jobs and services that enable small-scale biopower energy
Lands,” Environment Science Technology (42), 2008, pp.
generation activities such as wood combustion in power
5791–5794.
plants and the burning of biomethane for energy. The jobs
17 Pew’s Environmentally Friendly Production category excludes
we capture include those that make it possible for dairy
agricultural jobs and focuses only on infrastructure for biofuel
farmers to offset their energy needs by using biomethane
production—distillation and distribution centers. Venture
from manure, for paper plants to burn their scraps and
capital firms are investing heavily in second generation
reduce energy demands, and for plants such as the BMW
biofuels, technologies that seek to use more sustainable
factory in Spartanburg, South Carolina, to meet a percentage
feedstocks, such as switchgrass—and distillation and
of its energy demands by capturing and burning biomethane
distribution centers are an important, job-generating part of
released at a nearby landfill (see http://www.bmwusa.
how we might develop biofuels that are more sustainable than
com/Standard/Content/Uniquely/BMWInTheCommunity/
corn-based ethanol moving forward (see Cleantech Group™
CommunityandEnvironment.aspx).
LLC, Cleantech Investment Monitor 2008 Annual Review and
15 See Steve Olson and Robert W. Fri, eds., “National Academies
4Q08 Quarterly, 2009). In addition, in the transportation
Summit on America’s Energy Future,” The National
portion of the Environmentally Friendly Production category,
Academies Press, Washington, D.C., 2008, pp. 44-48. Also,
we capture jobs that produce and supply alternative products
nuclear power plants are capital intensive, much like coal-
and services to mass transit operators, including compressed
fired plants. Cost estimates for new nuclear plants range
natural gas engines and monitoring systems that allow for
from $9 billion to $13 billion; see Peter Behr, “A key energy
more effective deployment of public transit. Pew does not
industry nervously awaits its ‘rebirth’,” The New York Times,
include bus drivers, mechanics or administrators who work
April 27, 2009, http://www.nytimes.com/cwire/ 2009/04/27/
for public transit agencies.
27climatewire-a-key-energy-industry-nervously-awaits-
18 Board on Energy and Environmental Systems, National
its-r-10677.html?pagewanted=1 (accessed April 29, 2009)
Research Council and Curt Suplee, “What You Need to Know
and Terry Macalister, “Westinghouse Wins First U.S. Nuclear
About Energy,” Washington, D.C., The National Academies
Deal in 30 Years,” The Guardian, April 10, 2008, http://www.
Press, 2008, p. 14.
guardian.co.uk/world/2008/apr/10/nuclear.nuclearpower
19 U.S. Environmental Protection Agency, “2009 U.S.
(accessed April 29, 2009). In addition, the technology to
Greenhouse Gas Inventory Report: Inventory of U.S
reprocess spent fuel is at least 40 to 50 years away and
Greenhouse Gas Emissions and Sinks 1990-2007,” April
international proliferation resistant measures/agreements are
2009, http://www.epa.gov/climatechange/ emissions/
not in place for nuclear power to be rapidly expandable; thus,
usinventoryreport.html (accessed April 16, 2009).
it remains a highly centralized form of energy production and
20 Rather than being burnt directly, during gasification and
delivery can be problematic if plants go offline.
pyrolysis, coal is exposed to steam and oxygen under high
16 Research suggests that biofuel production can have a positive
temperatures and pressures. This heat and pressure breaks
net energy balance, particularly if the newest and most
down coal into its basic chemical parts—in a gaseous form
efficient production facilities are utilized. But biomass used to
in gasification and in a liquid form in pyrolysis. Once broken
produce these fuels face sustainability challenges over where
down into these components, the noxious outputs of coal
the biomass will come from (e.g., food for fuel and other land
burning (carbon dioxide, sulfur and nitrogen) can be better
use decisions). See Adam J. Liska, Haishun S. Yang, Virgil R.
trapped and the resulting gases and liquids can be used to
Bremer, Terry J. Klopfenstein, Daniel T. Walters, Galen E.
make cleaner energy. Information from the U.S. Department
Erickson and Kenneth G. Cassman, “Improvements in Life
of Energy, “Clean Coal and Natural Gas Power Systems,”
Cycle Energy Efficiency and Greenhouse Gas Emissions of
http://fossil.energy.gov/programs/powersystems/gasification/,
Corn-Ethanol,” Journal of Industrial Ecology (13) 1, pp. 58-
last updated December 8, 2008.
74; Alexander E. Farrell, Richard J. Plevin, Brian T. Turner,
21 Olson and Fri, eds., “National Academies Summit on
Andrew D. Jones, Michael O’Hare and Daniel M. Kammen,
America’s Energy Future,” Washington, D.C., The National
“Ethanol Can Contribute to Energy and Environmental
Academies Press, 2008, p. 80.
Goals,” Science, January 27, 2006 (311), pp. 506-508.
22 William Choate, “U.S. Energy Requirements for Aluminum
However, other research suggests that biomass can be
Production: Historical Perspectives, Theoretical Limits, and
generated sustainably, such as from agricultural residue
New Opportunities,” in John A.S. Green (ed.), Aluminum
and waste products, including forestry waste, storm and
Recycling and Processing for Energy Conservation and
pest-damaged trees, forest thinning for fire risk reduction,
Sustainability, Materials Park, OH: ASM International, 2007,
municipal waste or food industry waste, or by using
p. 204.
perennial crops on degraded/abandoned cropland or pasture
23 Joel Makower, Ron Pernick and Clint Wilder, “Clean
that is no longer suitable for other agricultural purposes. See
Energy Trends 2009,” Clean Edge, March 2009, http://www.
Robert D. Perlack, Lynn L. Wright, Anthony F. Turhollow,
cleanedge.com/ reports/reports-trends2009.php (accessed
Robin L. Graham, Bryce J. Stokes and Donald C. Erbach,
March 30, 2009).
Biomass as Feedstock for a Bioenergy and Bioproducts Industry:
24 Jeffrey T. Macher and David C. Mowery, eds., Committee on
The Technical Feasibility of a Billion-Ton Annual Supply, U.S.
the Competitiveness and Workforce Needs of U.S. Industry,
Department of Energy and U.S. Department of Agriculture,
in “Innovation in Global Industries: U.S. Firms Competing in
Washington, D.C., 2005; J. Elliot Campbell, David B. Lobell,
a New World,” Washington, D.C., The National Academies
Robert C. Genova and Christopher B. Field,
Press, 2008, http://books.nap.edu/openbook.php? record_
id=12112&page=231 (accessed May 2, 2009).
56
The Clean Energy Economy | The Pew Charitable Trusts
E N D N O T E S
25 Biotechnology Industry Organization, “Biotechnology
36 Pew interview with Gonen, April 7, 2009.
Industry Facts,” 2008, http://www.bio.org/speeches/pubs/er/
37 Ibid.
statistics.asp (accessed May 2, 2009).
38 Pew interview with Steven Hauser, head of market
26 Ernst & Young LLP, Beyond Borders: Global Biotechnology
development, GridPoint, March 20, 2009.
Report 2008, 2008, http://www.ey.com/Publication/
39 Pew interview with Michael Peck, director of Media,
vwLUAssets/Industry_Biotechnology_Beyond_
Institutional and Labor Relations in North America for
Borders_2008/$file/Biotechnology_Beyond_Borders_2008.
GamesaUSA, April 3, 2009.
pdf (accessed April 28, 2009).
40 U.S. Department of Energy, “Electricity Delivery and Energy
27 U.S. Bureau of Labor Statistics, Current Employment
Reliability: Distributed Energy Program,” May 17, 2006,
Statistics, http://www.bls.gov/ces/ (accessed April 16, 2009).
http://www.eere.energy.gov/de/energy_storage.html (accessed
28 U.S. Bureau of Labor Statistics (BLS), Occupational
April 26, 2009).
Employment Survey, May 2007. Pew’s researchers matched
41 Steven Chu, quoted in Olson and Fri, eds., “National
NETS data with the BLS occupational data to estimate the
Academies Summit on America’s Energy Future,”
earnings for jobs in the clean energy economy. Annual wages
Washington D.C., The National Academies Press, 2008, p.
have been calculated by multiplying the hourly mean wage
63.
by a “year-round, full-time” hours figure of 2,080 hours; for
42 Cleantech Group™ LLC, Cleantech Investment Monitor 2008
those occupations where there is not an hourly mean wage
Annual Review and 4Q08 Quarterly, 2009.
published, the annual wage has been directly calculated from
43 McKinsey & Company, “Pathways to a Low-Carbon
the reported survey data.
Economy: Version 2 of the Global Greenhouse
29 Kathy Krepcio, executive director of the John J. Heldrich
Gas Abatement Cost Curve,” January 2009, http://
Center for Workforce Development at Rutgers University,
globalghgcostcurve.bymckinsey.com/ (accessed March 10,
testimony before the U.S. House of Representatives
2009).
Committee on Education and Labor, March 31, 2009, http://
44 Energy Star® is a joint program of the U.S. departments of
edlabor.house.gov/documents/111/pdf/testimony/20090331K
Environment and Energy that labels homes and household
athyKrepcioTestimony.pdf (accessed May 2, 2009).
products (such as appliances, lighting, etc.) that meet
30 Hemlock Semiconductor highlights the conservative nature
their energy efficiency standards, helping consumers
of Pew’s count of businesses and jobs in the clean energy
save energy. The program also offers planning tools and
economy. Although Hemlock is one of the country’s largest
resources for homeowners who want to make energy-efficient
producers of polysilicon used to produce solar photovoltaic
improvements and partner with businesses to implement
devices, a large portion of Hemlock’s polysilicon business
energy management strategies, http://www.energystar.gov/
is rooted in the semiconductor industry, which we could
index.cfm?c=about.ab_index (accessed April 15, 2009).
not classify as a part of the clean energy economy. Because
Statistics from the U.S. Environmental Protection Agency
these two areas of polysilicon activity are not divided into
Energy Star Program, Report to Congress on Server and Data
two separate business units, we were not able to isolate the
Center Energy Efficiency Public Law 109-431 (August 2,
jobs at Hemlock related to the production of polysilicon for
2007).
solar photovoltaics. Unless we were able to classify an entire
45 Pew interview with Kent Anson, vice president of Global
establishment or isolate one of its business units as part of the
Energy and Environment for Honeywell Building Solutions,
clean energy economy, it was not included in our analysis. As
May 1, 2009.
a result, Hemlock Semiconductor was not included in our
46 Sari Krieger, “Honeywell’s Building Automation Business
establishment and jobs count.
Stands Out,” Clean Technology Insight, February 2, 2009.
31 Pew interview with Jarrod Erpelding, a spokesperson for Dow
47 Honeywell International Inc. brochure, “Leveraging the
Corning Corporate Communications, April 7, 2009.
Stimulus,” April 2009, p. 2.
32 In 2007, the United States recycled 33 percent of its
48 Honeywell International Inc. press release, “Honeywell Helps
municipal solid waste. See U.S. Environmental Protection
Pittsburgh Housing Authority Cut Utility Bills and Carbon
Agency Office of Solid Waste, Municipal Solid Waste in the
Emissions,” October 23, 2008, http://buildingsolutions.
United States: 2007 Facts and Figures, Nov. 2008, p. 13, http://
honeywell.com/Cultures/en-US/NewsEvents/NewsReleases/
www.epa.gov/epawaste/nonhaz/municipal/pubs/msw07-rpt.
HACP.htm (accessed May 1, 2009).
pdf (accessed April 15, 2009).
49 Ibid.
33 Pew e-mail exchange with Melody Serafino, spokesperson for
50 Honeywell International Inc. press release, “Honeywell and
RecycleBank, April 21, 2009.
Lewis and Clark College Team to Harness Solar Energy,”
34 Pew interview with Ron Gonen, co-founder and CEO of
February 19, 2008, http://buildingsolutions.honeywell.com/
RecycleBank, April 7, 2009; presentation by John Doerr,
Cultures/
partner, Kleiner Perkins Caufield & Byers, “Seeking Salvation
en-US/NewsEvents/NewsReleases/LewisandClark0208.htm
and Profit in Green Tech,” March 2007, http://www.ted.com/
(accessed April 24, 2009).
index.php/talks/john_doerr_sees_salvation_and_profit_in_
51 “Fortune 500,” Fortune, May 5, 2008, http://money.cnn.
greentech.html (accessed April 15, 2009).
com/magazines/fortune/fortune500/2008/snapshots/236.
35 Celeste LeCompte, “Down in the Dumps,” Sustainable
html (accessed April 17, 2009). Among its awards, Johnson
Industries, March 30, 2009, http://www.sustainableindustries.
Controls won the U.S. Environmental Protection Agency’s
com/recycledmarkets/42019787.html (accessed April 28,
2005 Clean Air Excellence Award, which recognizes
2009).
programs, projects or technologies that reduce emissions of
The Clean Energy Economy
57
E N D N O T E S
pollutants or hazardous/toxic air pollutants; are innovative
63 MoneyTree™, Venture Investments in Clean Technology
and unique; provide a model for others to follow; and result
Accelerates Significantly in 2008, Despite Economic Uncertainty,
in positive outcomes that are continuing/ sustainable. http://
PricewaterhouseCoopers and the National Venture Capital
www.johnsoncontrols.com/publish/us/en/ sustainability/
Association, based on data from Thomas Reuters, 2009.
awards_and_recognition.html (accessed May 2, 2009).
64 Ibid.
52 Pew interview with Joy Clark-Holmes, director of Local
65 Cleantech Group™ LLC, “Clean technology venture
Government and Market Solutions, Johnson Controls, March
investment falls to $1 billion in 1Q09,” April 1, 2009, http://
23, 2009.
cleantech.com/about/pressreleases/040109.cfm (accessed
53 Companies that help drive demand for products and services
May 3, 2009).
in the clean energy economy, such as Austin Energy, are
66 See PricewaterhouseCoopers/National Venture Capital
important to note. Austin Energy, like other utilities, invests
Association MoneyTree™ Report, Data: Thomson Reuters,
in developing clean, renewable energy sources and provides
“Total U.S. Investments by Year Q1 1995 - Q1 2009,”
incentives for its customers and suppliers to adopt energy-
http://www.nvca.org/index.php?option=com_content&
efficient technologies and practices, thereby creating a market
view=article&id=78:latest-industry-statistics&catid=40:
demand for the clean energy economy. But while these
research&Itemid=102, VC Investments, Q1 2009—Money
businesses are critical to growing the clean energy economy,
Tree—National Data, (accessed May 4, 2009). Venture
they are not included in our count of businesses and jobs.
capital in the first quarter of 2008 was $7.74 billion; venture
As noted in Appendix B, Pew’s analysis captures only the
capital in the first quarter of 2009 was $3 billion. Pew
producers and suppliers of the products and services in the
calculates a 61 percent overall drop between those quarters.
clean energy economy, not the companies or institutions
67 Cleantech Group™ LLC, Cleantech 2009: The Emergence of
that drive demand—underscoring the fact that our count is
Low Carbon Economy, p. 2, April 18, 2009.
conservative.
68 Cleantech Group™ LLC, “Clean technology venture
54 Pew interview with Ed Clark, public information officer for
investment reaches record $8.4 billion in 2008 despite credit
Austin Energy, April 6, 2009; certifications are given by the
crisis and broadening recession,” January 6, 2009, http://
Building Performance Institute and the Residential Energy
cleantech.com/about/pressreleases/010609.cfm (accessed
Services Network.
May 3, 2009).
55 While Project FROG was established in 2006, NETS data
69 Cleantech Group™ LLC, Cleantech Investment Monitor 2008
did not pick up the company as part of our business or
Annual Review and 4Q08 Quarterly, 2009.
jobs count. As described in the methodology (Appendix B),
70 Speech at the National Governors Association Winter
NETS does not always pick up new businesses immediately.
Meeting, February 25, 2008 (video at www.kpcb.com/team/
Once a new business is identified, however, the NETS data
doerr).
are subsequently updated to reflect the dates the missed
71 Emma Ritch, “Solyndra reveals thin-film solar tubes,”
company was in business, and it is included in future counts.
Cleantech Group™, LLC, October 6, 2008, http://www.
56 Project FROG Web site gallery, http://projectfrog.com/
cleantech.com/news/3647/solyndra-cigs-thin-film-solar-
gallery/ movies/ (accessed April 3, 2009).
panel-tube-cylinder (accessed April 16, 2009).
57 Pew interview with Adam Tibbs, president of Project FROG,
72 Emma Ritch, “Solyndra nabs $538 DOE Loan for 500MW
April 3, 2009.
factory,” Cleantech Group™, LLC, March 20, 2009, http://
58 Pew interview with Robert Fox, managing partner, Manko,
www.cleantech.com/news/print/4288 (accessed April 16,
Gold, Katcher & Fox, April 8, 2009.
2009).
59 Pew interview with David Prend, managing general partner,
73 Pew interview with Prend, April 3, 2009.
RockPort Capital and director, National Venture Capital
74 U.S. Department of Energy press release, March 20, 2009,
Association, April 31, 2009.
http://www.lgprogram.energy.gov/press/032009.html
60 Heslin Rotherberg Farley & Mesiti P.C., “Clean Energy Patent
(accessed May 2, 2009).
Growth Index,” 2009, http://cepgi.typepad.com/heslin_
75 Solyndra press release, March 20, 2009, http://www.
rothenberg_farley/ (accessed April 13, 2009).
solyndra.com/News/Press-Release-032009 (accessed May 2,
61 The Innovation Alliance, “Development of Green
2009).
Technologies Reliant on Strong Patent Protections,” February
76 Jay Yarow, “Solyndra To Make Solar Power As Cheap As Coal
25, 2009, http://www.innovationalliance.net/media-center/
In 2-3 Years,” The Business Insider, March 25, 2009, http://
news/development-green-technologies-reliant-strong-patent-
www.businessinsider.com/solyndra-to-make-solar-power-as-
protections (accessed May 3, 2009).
cheap-as-coal-in-2-3-years-2009-3 (accessed April 17, 2009).
62 Types of fuel cells are similar to traditional battery
77 Pew interview with Will Coleman, partner, Mohr Davidow
technologies; small-scale fuel cells have the ability to power
Ventures, March 27, 2009.
portable electronics more efficiently. Other fuel cells differ
78 Mohr Davidow Web site, http://www.mdv.com/ (accessed
from traditional battery technologies because they can serve
April 28, 2009).
as large-scale continuous sources of power in the presence
79 Maryland Department of Environment press release,
of a fuel source. Hydrogen powered fuel cells can power
“Maryland General Assembly Passes Critical Bills To Protect
cars and even provide backup power generation in remote
Environment, Public Health,” April 2009, http://www.mde.
locations. See U.S Department of Energy Hydrogen Program,
state.md.us/ResearchCenter/Publications/General/eMDE/
http://www.hydrogen.energy.gov/.
vol3no10/legislation.asp (accessed May 4, 2009).
80 American Recovery and Reinvestment Act, February 17,
58
The Clean Energy Economy | The Pew Charitable Trusts
E N D N O T E S
2009, http://www.recovery.gov (accessed May 2, 2009).
95 “Highlights of House Cap and Trade Plan,” CQ Today, April
81 Pew interview with Kenneth Reifsnider, director, University
1, 2009.
of South Carolina’s Solid Oxide Fuel Cell program, April 1,
96 Among other categories of data, the NETS database provides
2009.
the following types of information that allow for a micro-
82 Ibid.
analysis of the clean energy economy: (1) business name,
83 Maryland Clean Energy Center Announcement (as prepared),
address and contact information (including officer, title,
Office of Governor Martin O’Malley, March 31, 2009, http://
phone number, Federal Information Processing Standards
www.governor.maryland.gov/speeches/090331.asp (accessed
[FIPS] codes and longitude and latitude); (2) number
April 27, 2009).
of related establishments in the same state; (3) industry
84 Database of State Incentives for Renewables and Efficiency,
classification (primary SIC and up to five secondary SICs;
http://www.dsireusa.org (accessed April 14, 2009).
whether the primary three-digit SIC changed between 1990
85 Pew interview with Texas State Representative Warren
and present); (4) type of establishment (single location,
Chisum, March 27, 2009.
headquarters, or branch; public or private; and legal status:
86 Ibid.
proprietorship, partnership, corporation or nonprofit);
87 American Wind Energy Association, Annual Wind Industry
(5) employment at location and job growth relative to
Report, 2008, http://www.awea.org/publications/reports/
peers (three-digit SIC); and estimated annual sales at the
AWEA-Annual-Wind-Report-2009.pdf (accessed April 16,
establishment and its sales growth relative to peers.
2009).
97 See Sue Birley, “Finding the New Firms,” Proceedings of the
88 Pew interview with Chisum, March 27, 2009.
Academy of Management Meetings, vol. 47, 1984, pp. 64–68;
89 Glenn Anderson, “Green 2.0,” State Legislatures, April 2009.
Howard Aldrich, Arne Kalleberg, Peter Marsden and James
90 An EERS requires electric utilities and natural gas distributors
Cassell, “In Pursuit of Evidence: Sampling Procedures for
to attain a required level of energy efficiency savings while
Locating New Businesses,” Journal of Business Venturing, vol.
an RPS requires utilities to obtain a certain amount of
4, 1989, pp. 367–386; Steven J. Davis, John C. Haltiwanger,
energy from renewable resources (i.e., wind, biomass, solar,
and Scott Schuh, “Small Business and Job Creation:
etc.). RPS and EERS are complementary policies that when
Dissecting the Myth and Reassessing the Facts,” Small Business
properly implemented can contribute to the reduction of a
Economics, vol. 8, 1996, pp. 297–315.
state’s energy demand and dependency on fossil fuels.
98 David Neumark, Junfu Zhang and Brandon Wall, “Business
91 There are 19 state-based EERS: California, Colorado,
Establishment Dynamics and Employment Growth,” Hudson
Connecticut, Hawaii, Illinois, Iowa, Maryland, Michigan,
Institute Research Paper No. 05-02 (November 2005), p. 15.
Minnesota, Nevada, New Mexico, New York, North
99 The QL2 search platform could verify only the clean energy
Carolina, Ohio, Pennsylvania, Texas, Washington, Vermont
economy activities of companies that self-identified as
and Virginia. At this writing, three states are considering
producing or processing clean energy economy products
similar policies: Massachusetts, New Jersey and Rhode
or services. As a result, our verification process produced a
Island. American Council for an Energy-Efficient Economy
conservative count of businesses and jobs in the clean energy
(ACEEE), Laying the Foundation for Implementing a Federal
economy.
Energy Efficiency Resource Standard, March 2009, http://aceee.
100 Our 16 segments were based on 11 original segments
org/pubs/e091.pdf?CFID=3657226&CFTOKEN=86100118
identified by the Cleantech Group™, LLC, a trade association
(accessed May 19, 2009).
and consulting and research firm. See http://cleantech.com.
92 Presidential Memorandum - The Energy Independence
101 As defined by the Cleantech Group™, LLC, clean
and Security Act of 2007, January 26, 2009, http://www.
technology, or “cleantech,” “represents a diverse range of
whitehouse.gov/the_press_office/The_Energy_Independence_
products, services, and processes, all intended to provide
and_Security_Act_of_2007/ (accessed April 29, 2009).
superior performance at lower costs, while greatly reducing
93 The Pew Campaign for Fuel Efficiency Web site, http://
or eliminating negative ecological impact, at the same time
pewfuelefficiency.org/ (accessed April 29, 2009).
as improving the productive and responsible use of natural
94 The White House Web site, http://www.whitehouse.gov/
resources.” http://cleantech.com/about/cleantechdefinition.
agenda/energy_and_environment/, http://change.gov/agenda/
cfm (accessed May 3, 2009).
economy_agenda/ (accessed April 17, 2009).
102 Database of State Incentives for Renewables and Efficiency
database, http://www.dsireusa.org (last accessed on April 14,
2009).
The Clean Energy Economy
59
9 0 1 E S T R E E T • 1 0 T H F L O O R • W A S H I N G T O N , D C 2 0 0 0 4
W W W . P E W T R U S T S . O R G
