A Good Environment for Jobs

This report by the Stockholm Environment Institute examines the relationship between energy and environmental policies and job creation in the United States. Through a survey of 36 existing studies and original analysis using IMPLAN 2009 data, the authors argue that shifting investments from fossil-fuel to non-fossil-fuel industries generally leads to net employment gains. The report provides a quality checklist for job impact studies and demonstrates these principles by modeling a transition to a coal-free energy sector by 2050.

• Investments in non-fossil-fuel sectors generate significantly more employment per dollar than investments in fossil-fuel industries. Using IMPLAN 2009 data, the authors found that $1 million spent in non-fossil-fuel sectors results in twice as many jobs as the same amount spent in fossil-fuel industries.
• A broad review of 36 job impact estimates indicates a consistent pattern where clean energy alternatives create more jobs than the fossil fuels they replace, suggesting that environmental regulations often lead to net job creation.
• The authors identify significant methodological deficiencies in existing job impact literature. Many studies fail to distinguish between full-time equivalent (FTE) and part-time plus full-time jobs, fail to explain the source of their job ratios, and do not discuss macroeconomic effects missed by simple estimation methods.
• While clean energy transitions may create net jobs for the overall economy, they cause concentrated job losses in the coal, natural gas, and nuclear industries. The report emphasizes that retraining workers with specialized fossil-fuel skills must be a cost component of any green energy policy.
• The report establishes that fossil-fuel industries have a relatively low impact on direct employment compared to other sectors, which drives the overall variation in job impact ratios.
• The authors argue that during periods of high unemployment, government spending can create jobs for the unemployed without crowding out private sector activity, contrasting with conditions of full employment where such spending might compete with the private sector.

APA

Stanton, E. A., & Taylor, M. (2012). A Good Environment for Jobs. Stockholm Environment Institute. https://www.sei.org/mediamanager/documents/Publications/Climate/sei-e3-2012-a-good-environment-for-jobs.pdf

Chicago

Stanton, Elizabeth A., and Matthew Taylor. A Good Environment for Jobs. Stockholm Environment Institute, 2012. https://www.sei.org/mediamanager/documents/Publications/Climate/sei-e3-2012-a-good-environment-for-jobs.pdf.

Wikipedia

{{cite report |last1=Stanton |first1=Elizabeth A. |last2=Taylor |first2=Matthew |title=A Good Environment for Jobs |publisher=Stockholm Environment Institute |date=August 2012 |url=https://www.sei.org/mediamanager/documents/Publications/Climate/sei-e3-2012-a-good-environment-for-jobs.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stanton2012good, author = {Stanton, Elizabeth A. and Taylor, Matthew}, title = {{A Good Environment for Jobs}}, institution = {Stockholm Environment Institute}, year = {2012}, month = aug, url = {https://www.sei.org/mediamanager/documents/Publications/Climate/sei-e3-2012-a-good-environment-for-jobs.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }