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The Economic Benefits of CF&D�Job Opportunities Increase!

Jerry Hinkle

CCL Economic Research Coordinator

April 5, 2021

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About Our Speaker

Jerry Hinkle

�Economic Research Coordinator

Citizens’ Climate Lobby

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Three Takeaways

The standard model (CGE) for evaluating RNCT policy impacts cannot readily evaluate job impacts.

On a net basis, job opportunities increase. In the critical electric power sector, job opportunities increase 3 to 1.

The new clean energy jobs compensation and benefits are better than the national average, on par with fossil fuel jobs.

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Our Agenda

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National job impact numbers?

Electricity sector jobs impact

Clean energy job compensation

Summary and questions

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Climate Benefits Greatly Improve GDP Over Time

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Net Policy Benefits of EICDA (in 10 years)

+ Climate Benefits 2.18B x $169 = +$368B/yr
+ Health Co-Benefits = +$700B/yr
- Economic Costs = -$100B/yr
= Net Policy Benefits ? +$968B/yr

Net Benefits Estimate is Still Conservative!

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CGE Models and Jobs

EMF 32 (11 models) ?
Columbia Report ?
RFF Calculator ?

Where to get national job impacts of a RNCT?

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Electric Power Sector Emissions

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IMF Job Impacts: 2 key points

Production in renewable energy is more job intensive than electricity generation based on fossil fuels (see chart). (pg. 92)

In general, the job effects seem larger and net negative in response to changes in nonmarket policies, whereas market policies, such as feed-in tariffs and trading programs, have a more muted and net positive effect. (pg. 92)

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IMF: Job Impacts

Per GWh of electricity generated

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Job Impacts: Clean Energy Jobs 2-3X FF�per $1 million invested

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Actual Jobs Impact in Europe�31 Countries/30 years

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New Jobs Will Be Good Jobs!

Job growth 2X national avg, even without a carbon price!
Wages 25% higher than national avg
More likely to have health & retirement benefits than nat avg
Wages comparable to fossil fuel jobs

READ SLIDE
SUMMARY Point – the policy will create abundant good jobs!
Big investment and job Shift from more polluting to cleaner industries, and we recognize this is painful, and we need to address the transition!! But it is necessary.

Median hourly wages for clean energy jobs are 25% higher than the national median wage. Further, clean energy jobs are more likely to come with health and retirement benefits than the rest of the private sector. And generally, unionization rates for clean energy jobs are slightly higher than the rest of the private sector.
Clean energy job salaries are comparable to fossil fuel job salaries. For instance, jobs in coal, natural gas and petroleum fuels pay about $24.37 an hour, while jobs in solar and wind pay about $24.85 an hour. Similarly, jobs in energy efficiency come with median salaries of about $24.44.
Even without a charge for pollution, U.S. clean energy employment has grown 6.0%, more than twice the national average, for the last three years (2017-2019). In contrast, employment has fallen in the natural gas (-5.3%) and coal (-7.1%) businesses.

Source - Clean Jobs, Better jobs

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Questions?