d epartment of a gricultural, e nvironmental, and d evelopment e conomics aede.osu.edu making green...
Post on 25-Dec-2015
217 Views
Preview:
TRANSCRIPT
DEPARTMENT OFAGRICULTURAL, ENVIRONMENTAL,AND DEVELOPMENT ECONOMICS
aede.osu.edu
Making Green Jobs Work for OhioMarch 3, 2011
Ohio Farm Bureau Federation
Amanda WeinsteinSwank Program in Rural-Urban Policy
http://aede.osu.edu/programs/swank/
Introduction
• Motivation• Ohio Energy Profile• Green Energy and Employment• Agriculture and Alternative Energy• Green Energy Strategy• Conclusion
• Ohio’s Senate Bill 221 requires 25% of the state’s electricity to be generated from alternative energy and at least half of that from renewable sources such as solar or wind by 2025
• In his State of the Union address, President Obama stated a national goal of obtaining 80% of our electricity from clean energy sources by 2035
Motivation
85.93%
0.78%2.75%
9.91% 0.43% 0.19%
Ohio 2009 Electricity Generation by Source
Coal
Petroleum
Natural Gas
Nuclear
Hydro
Other Renewables
47.06%
0.79%
22.35%
19.69%
6.64% 3.48%
U.S. 2009 Electricty Generation by Source
• In the green energy race, Ohio is definitely starting off behind and other states won’t be waiting for Ohio to catch up
Renewable Energy Breakdown
Geotherm
al
Hyd
ro Conve
ntional
So
lar
W
ind
W
ood/Wood W
aste
M
SW Biogenic/
Landfill G
as
Other B
iomass0
1000
2000
3000
4000
2008 Ohio Renewable Energy Generation
Thou
sand
Meg
awatt
hour
s
• Ohio generates far less renewable energy as a percentage than the U.S. as a whole
• Additionally, Ohio’s distribution of the renewable energy generation looks very different from the U.S.
Replacing Coal with Wind
• Our previous paper showed that replacing 25% of Ohio’s electricity with electricity generated from wind would decrease carbon emissions by approximately 58 billion pounds
• It would also increase energy costs for consumers by about $1.4 billion
• Ohio would gain at most 6,000 net jobs, and at worst, lose 1,000 net jobs. – Energy generation is capital intensive not labor intensive– There are significant displacement effects– Although green energy jobs have been experiencing significant
growth, the energy sector isn’t that large to begin with
Employment by Energy Source
Coal Natural Gas Biomass Low
Biomass High
Wind Low Wind High Solar Low Solar High0.00E+00
2.00E-07
4.00E-07
6.00E-07
8.00E-07
1.00E-06
1.20E-06
1.40E-06
1.15E-07 1.08E-07 8.90E-08
3.24E-07
8.11E-08
3.18E-07
8.46E-07
1.21E-06
Average Facility Employment (Jobs/kWh)
Implications for efficiency and productivity
Cost by Energy Source
Coal Natural Gas Nuclear Hydroelectric Biomass Wind Solar Geothermal0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
10.04 8.3111.90 11.99 11.10
14.93
39.61
11.57
2016 U.S. Average Levelized Cost (2008 cents/kWh)
•The average levelized cost is the present value of all costs including building and operating the plants. •Ohio’s lower energy costs are in part due to the significance of coal in energy generation (also implies that the demand for energy efficient products will be lower)
• In 2007, Ohio had approximately 35,257 clean jobs
• From 1998 to 2007 clean jobs experienced a growth rate of 7.7% (0.85% annualized) while Ohio’s total economy experienced a growth rate of -2.2% over this time frame
• Most green jobs are not in green energy
Green Jobs
63%10%
15%
8%
3%
Ohio Jobs in the Clean Energy Economy
Conservation and Pollu-tion Mitigation
Clean Energy
Energy Efficiency
Environmentally Friendly Production
Training and Support
Ohio Green Jobs
• With a declining manufacturing industry, Ohio employment has been struggling.
• Unemployment is still approximately 9.3%• Total number of jobs in Ohio is 6,304,302. • Although growing at an annualized rate of
0.85%, only 0.56% of jobs are clean in Ohio
2000 2009-2000 Years to Make Up
State Clean Jobs Total Jobs Lost Current Job Loss
Ohio 33,413 551,000 331
Michigan 21,546 800,100 303
• Life cycle emissions rates include the total aggregated emissions over the life cycle of the fuel to include extraction, production, distribution, and use.
• Also implies that buying an electric car is less “green” in Ohio and demand will be lower
Carbon Emissions
Coal Natural Gas Nuclear Hydroelectric Biomass Wind Solar Photovoltaic Geothermal0
0.5
1
1.5
2
2.5
2.082
1.244
0.034 0.036 0.092 0.028 0.078 0.03
Life Cycle Emission Rates (lbs CO2/kWh)
Agriculture and Alternative Energy
• Although the employment effects may not be large, alternative energy has the potential to be very good for agriculture
• Wind energy- it may look different but something about it fits – lifestyle, continue farming, additional income, etc.
• Wind concerns–some consider it an eyesore, noise, bats, birds, and other wildlife effects to consider
Agriculture and Biofuel
• Alternative energy from biomass can also be a natural fit for Ohio
• Ohio climate is clearly conducive to growing corn which can be used in corn-based ethanol, algae used to make algae oil, and producing other biofuels
• Some biofuel concerns - raises price of corn affecting other agriculture sectors and food prices
• Ohio has some often overlooked advantages when it comes to alternative energy
• Established transmission lines – population and manufacturing centers, significance of coal
• A recent article calls transmission lines “the missing link in energy evolution.”
• Because wind and solar are more land intensive, renewable energy must be located away from population centers (even farther than coal power plants) requiring significant power lines for transmission.
• To keep this an advantage need to continue to maintain and upgrade transmission lines and establish smart grid
Advantages of Ohio Alternative Energy
U.S. Population Density• The Dayton/Columbus region is one of two “centroids” in the U.S. because
of its proximity to a large share of the U.S. population and manufacturing centers
Ohio’s Disadvantages• It’s important to look at Ohio’s resources especially compared to other areas• Solar is just not one of Ohio’s resources especially compared to other areas
such as Arizona and California and the southwest region in general
• Just because lacking solar resources doesn’t mean there’s not a place for Ohio in the green economy
• We need to be economically strategic when considering our green jobs strategy
• It’s important that we don’t just play follow the leader, but consider Ohio’s unique resources and find where Ohio fits into the green economy
• Use Ohio’s strengths while considering the strengths of other states competing for green jobs and businesses
• We need to find out how our strengths can fill green energy gaps
Economically Strategic
• More manufacturing experience than the U.S. – Build energy efficient products for households, businesses, and the
alternative energy industry– First Solar in Perrysburg, OH largest producer of thin film solar
panels• Meters and advanced instrumentation– Help with intermittent nature of alternative energy– Update energy grid and invest in a smart grid– Columbus, Cincinnati, and Cleveland are all experimenting with
new smart meters• Innovation and R&D in alternative energy– Energy storage and transmission (battery patents)
Taking Strategic Action
Ohio’s Current Green Energy Strategy
$350,000
$81,640,558
$5,418,095$10,102,044
$101,026,479
Ohio Third Frontier Green Economy Spending
Conservation and Pollu-tion Mitigation
Clean Energy
Energy Efficiency
Environmentally Friendly Production
Training and Support
• Continue to support:– Alternative energy research and development and
innovation– Renewable energy projects– Energy efficiency– Conservation and pollution mitigation
• Increase attention and support for:– Environmentally friendly production and
manufacturing– Transmission and storage of renewable energy
Conclusion
top related