Environmental protection, the economy, and jobs: national and regional analyses

Abstract

The relationship between environmental protection (EP), the economy, and jobs has been an issue of harsh contention for decades. Does EP harm the economy and destroy jobs or facilitate economic growth and create jobs? We address this issue by summarizing the results of the Jobs and the Environment Initiative, research funded by nonprofit foundations to quantify the relationship between EP, the economy, and jobs. We estimate the size of the US environmental industry and the numbers of environment-related jobs at the national level and in the states of Florida, Michigan, Minnesota, North Carolina, Ohio, and Wisconsin. This is the first time that such comprehensive, detailed estimates have been developed. Our major finding is that, contrary to conventional wisdom, EP, economic growth, and jobs creation are complementary and compatible: investments in EP create jobs and displace jobs, but the net effect on employment is positive. Second, environment protection has grown rapidly to become a major sales-generating, job-creating industry--$300 billion/year and 5 million jobs in 2003. Third, most of the 5 million jobs created are standard jobs for accountants, engineers, computer analysts, clerks, factory workers, etc., and the classic environmental job (environmental engineer, ecologist, etc.) constitutes only a small portion of the jobs created. Most of the persons employed in the jobs created may not even realize that they owe their livelihood to protecting the environment. Fourth, at the state level, the relationship between environmental policies and economic/job growth is positive, not negative. States can have strong economies and simultaneously protect the environment. Finally, environmental jobs are concentrated in manufacturing and professional, information, scientific, and technical services, and are thus disproportionately the types of jobs all states seek to attract.