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93 Political Economy Research Institute • Center for American Progress

Clean-Energy InvestmentsCreate Jobs in VirginiaBy Robert Pollin, James Heintz, and Heidi Garrett-Peltier

Investments in a clean-energy economy will generate major employment benets or

 Virginia and the rest o the U.S. economy. Our research nds that Virginia could see a net

increase o about $3.9 billion in investment revenue and 45,000 jobs based on its share

o a total o $150 billion in clean-energy investments annually across the country. Tis is

even aer assuming a reduction in ossil uel spending equivalent to the increase in clean-

energy investments.

 Adding 45,000 jobs to the Virginia labor market in 2008 would have brought the state’s

unemployment rate down to 2.9 percent rom its actual 2008 level o 4.0 percent.

Clean energy creates jobs across the economy

Clean-energy investments create 16.7 jobs or every $1 million in spending. Spending on

ossil uels, by contrast, generates 5.3 jobs per $1 million in spending.

Most o the jobs created through clean-energy investments will be in the same areas

that people work in today. Constructing wind arms creates jobs or sheet metal workers,

machinists, and truck drivers. Increasing buildings’ energy efciency through retrot-

ting requires rooers, insulators, and building inspectors. Expanding mass transit systems

employs civil engineers, electricians, and dispatchers.

Relative to spending on ossil uels, clean-energy investments create 2.6 times more jobs

or people with college degrees or above, 3 times more jobs or people with some college,

and 3.6 times more jobs or people with high school degrees or less.

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Legislation encourages private investment

Most o the $150 billion per year in new clean energy investments would come rom

private businesses. Te American Recovery and Reinvesment Act encourages private

investors through a wide range o subsidies, incentives, and regulations. Te American

Clean Energy and Security Act—currently being debated in Congress—includes a range

o measures that would substantially strengthen these clean-energy investment incentivesor private businesses.

Policies such as the ACESA will have signicant economic benets in addition to their envi-

ronmental contributions. Most importantly, a clean-energy investment program will be an

engine or expanding employment opportunities in Virginia and throughout the country.

Investment promotes efficiency and renewable energy

Te largest share o clean-energy investments will go toward energy efciency, including

unds or building retrots, public transportation, and a smart grid electrical transmission

system. Important new investments will also be devoted to developing renewable energy 

sources, including wind, solar, biomass, and geothermal power.

Te overall clean-energy investment program will provide a major boost to the construc-

tion and manuacturing sectors, in Virginia and throughout the United States.

Rober Pollin is professor of economics and co-direcor of he Poliical Economy Research

 Insiue a he Universiy of Massachusets-Amhers. James Heinz is associae research professor and associae direcor for PERI. Heidi Garret-Pelier is a PERI research fellow.