| economic analysis
Renewable Energy, Efficiency
Create Jobs for U.s. and Colorado
By ROGER H. BEzDEK
Roger H. Bezdek is
president of Management information services inc., a Washington,
d.C.-based economic
research firm specializing in energy and
environmental issues.
Contact Bezdek at
rbezdek@misi-net.com.
download the full ASES
Green-Collar Jobs in the
U.S. and Colorado report
at ases.org/greenjobs.
In 2007, the American Solar Energy Society and Management Information Services Inc. conducted the first
comprehensive study of the size of the renewable energy (RE) and energy-efficiency (EE) industries. We recently updated this research and estimated the size of the
RE/EE industries for the United States with a focus on
Colorado, and developed forecasts for 2030. The report,
ASES Green-Collar Jobs in the U.S. and Colorado, was published in January.
In 2007, the U.S. RE/EE industries generated $1 trillion
in sales and created more than 9 million jobs — including
$10.3 billion in sales and more than 91,000 jobs in Colorado. RE and EE revenues represent substantially more than
the combined 2007 sales of the three largest U.S. corporations — Wal-Mart, ExxonMobil and GM sales totaled $905
billion. RE and EE grew faster than America’s pre-recession
economy, and still contain some of the fastest-growing
industries in the world, including wind, photovoltaics,
fuel cells, recycling/remanufacturing and biofuels. With
appropriate government policies, RE/EE could, by 2030,
generate more than 37 million jobs in the United States,
including more than 600,000 jobs in Colorado.
In the United States, RE gross revenues totaled nearly $43 billion, and the number of jobs created exceeded
500,000 in 2007 (see table 1). These new jobs were
disproportionately for scientific, technical, professional
and skilled workers, and more than 95 percent were in
private industry. More than 70 percent of new jobs were
in the biomass sector, primarily ethanol and biomass
power. The second-largest number of jobs was in the wind
sector of the industry, followed by the geothermal and
photovoltaic sectors.
Table 1
U.S. Renewable energy and energy-efficiency industries
in 2007
industry Revenues industry Jobs
(billions) (thousands)
Renewable Energy $42.58 218
Energy Efficiency 1,002.92 3,745
TOTAL $1,045.50 3,963
Source: Management Information Services Inc. and American Solar Energy Society, 2008.
total Jobs
(thousands)
504
8,586
9,090
EE gross revenues totaled more than $1 trillion in 2007,
and the number of jobs created totaled nearly 8. 6 million.
More than 98 percent of these jobs were in private industry.
More than 36 percent of the jobs were generated by the recycling, reuse and remanufacturing sector. The second-largest
number of jobs went to the nondurable manufacturing sector, followed by the miscellaneous durables manufacturing
sector, and the computers, printers and copiers sector.
RE/EE Grew Twice as Fast as Economy
In constant 2007 dollars, total RE revenues increased
5. 5 percent, from $40.4 billion in 2006 to $42.6 billion in
2007. Excluding the drought-affected hydroelectric sector,
RE industry revenues increased 7. 8 percent, from $36.3
billion to $39.1 billion.
The real growth rate of U.S. gross domestic product
between 2006 and 2007 was 2. 19 percent. Thus, even
including hydro, the RE industry grew more than twice
as rapidly as the overall U.S. economy. Solar thermal grew
more than 35 percent, biodiesel grew 30 percent, ethanol
grew nearly 30 percent and photovoltaics grew more than
25 percent.
In constant 2007 dollars, total EE revenues increased
4. 4 percent and the total number of EE jobs grew by more
than 800,000. Thus, the U.S. EE industry between 2006
and 2007 also grew about twice as rapidly as the overall
U.S. economy.
Colorado mirrored these growth trends. Gross RE
revenues totaled nearly $1.1 billion, creating more than
10,000 jobs. The largest number of jobs was in the federal
government sector, primarily at the National Renewable
Energy Laboratory in Golden, followed by the wind and
ethanol sectors.
Gross EE revenues for Colorado totaled more than $9
billion, creating more than 81,000 jobs. The largest number
of jobs was generated by the recycling, reuse and remanufacturing sector.
RE and EE together accounted for more than 4 percent
of gross state product and more than 3 percent of total
employment in the state.
Projecting Growth to 2030
In a business-as-usual case, that is, with no significant
increase in government support or incentives, U.S. RE revenues will increase 130 percent by 2030, to $98 billion;
EE revenues will increase 86 percent, to $1.8 trillion. Jobs
created by RE will increase 160 percent, to 1.3 million;
jobs created by EE will increase 75 percent, to 15 million.
(Details in table 2.)
With aggressive government incentives, RE revenues
will increase 1,200 percent by 2030, from $42.6 billion
to $560 billion. EE revenues will increase 270 percent,
from $1trillion to $3.7 trillion. RE jobs will grow 1,300
