After more than a decade of public investment in clean energy in the United States, largely initiated by the 2009 American Recovery and Reinvestment Act, a wealth of retrospective studies makes clear that funding clean energy drives broad economic development and job creation.

As the country recovers from the economic fallout of the COVID-19 pandemic, there are important choices to make about how stimulus dollars are spent, and whether these investments will build a sustainable and economically resilient future that also accelerates the transition to clean energy.

Investing in Clean Energy: A Literature Review examines the economic benefits of investing in clean energy, emphasizing a just transition for workers and communities, and makes a strong case for clean energy as an economic stimulus in Washington state. The discussion is organized into four parts, with the following key takeaways:

Part 1: Job Creation in the Clean Energy Economy

•  Washington has fewer fossil fuels jobs to lose than other parts of the country, but these jobs still may not be easily replaced by clean energy work.

•  Clean energy—particularly energy efficiency and solar—drives more job creation than the fossil fuel industry, but jobs in fossil fuels tend to have higher wages, better benefits, and less turnover.

•  There are trade-offs between job creation and electricity generation capacity for wind and solar, with wind likely to power more of Washington’s clean energy future but provide fewer jobs.

Part 2: Workforce Transition and Development

•  Pre-existing programs, such as registered apprenticeships, are an effective, time-tested, and industry-backed way to build a clean energy workforce.

•  Broad skills training and local-hire provisions build economic resilience for workers and communities, and economic outcomes should be targeted and tracked for disadvantaged groups.

•  Collaboration with industry can inform the need for labor and decrease the cost of transitioning workers, while labor unions can provide a unified, cross-company network to organize and support workers through job transitions.

Part 3: Distribution of Costs and Benefits

•  Low-income groups and marginalized communities face multiple barriers to accessing the benefits of a clean energy transition, which require careful attention and local engagement.

•  Rural areas in Washington have ample clean energy resources in wind and solar, as well as potential for economic benefits from electric vehicles.

•  A just transition must consider community-wide investments in all impacted industries, as well as support for fossil fuel workers.

Part 4: The Impact of Public Policy

•  Reliable, long-term investments and incentives provide stability for clean energy businesses, workers, and their customers.

•  Making public investments accessible to all—through thoughtful policy design, clear communication, and timely administration—is key for achieving equitable clean energy development and sustainable economic benefits from clean energy.

•  Policies that encourage private sector investment alongside public spending, such green banks, can both accelerate and sustain a clean energy economy.

Investing in Clean Energy Jobs: A Literature Review summarizes 76 clean energy jobs studies and reports to inform Northwest policymakers about the best practices for both developing clean energy jobs as well as transitioning existing fossil fuel jobs. The research was current as of February 2021.