America’s New Climate Economy: A Comprehensive Guide to the Economic Benefits of Climate Policy in the United States

This working paper by the World Resources Institute argues that climate policy and low-carbon infrastructure investments can stimulate the U.S. economy, create jobs, and revitalize rural communities, while delaying action risks significant GDP losses and public health crises.

• Delaying climate action exposes the United States to significant economic risks. Without new policies, annual economic damages are projected to be between 1-3% of GDP by 2100, with a worst-case scenario reaching 3.7-10%.
• Clean energy is becoming more cost-competitive than fossil fuels. Approximately 75% of the U.S. coal fleet is now more expensive to operate than building and operating new wind and solar farms, and new natural gas plants are considered risky investments due to clean energy performance improvements.
• The low-carbon economy is a significant source of employment in the U.S. In 2019, zero-emissions generation (solar and wind) supported approximately 544,000 jobs, which is more than double the 214,000 jobs provided by fossil fuel generation. Additionally, $1 million invested in clean energy creates more than twice as many jobs as the same investment in fossil fuels in the short- to medium-term.
• Ambitious climate action requires manageable investment levels. Estimates suggest additional energy investments would be at most 2% of GDP, which is well within the historical range of energy spending (which has fluctuated between 6% and 13% of GDP).
• Climate policy can benefit rural communities and the manufacturing sector. The U.S. advanced energy industry earned $238 billion in revenue in 2018 (15% of the global total). In rural areas, energy efficiency upgrades can reduce energy burdens—which are 9% of income for low-income rural households versus a 3.3% national average—by up to 25%, saving households over $475 annually. Wind farms also provided $761 million in state and local taxes and $289 million in lease payments to landowners in 2018.
• Economic growth can be decoupled from carbon emissions. Between 2005 and 2017, 41 U.S. states and the District of Columbia increased their real GDP while reducing energy-related CO2 emissions, including states such as Maryland, Maine, Alabama, Georgia, Indiana, Ohio, Alaska, and Nevada.

APA

World Resources Institute (n.d.). America’s New Climate Economy: A Comprehensive Guide to the Economic Benefits of Climate Policy in the United States. https://www.wri.org/research/americas-new-climate-economy-comprehensive-guide-economic-benefits-climate-policy-united

Chicago

World Resources Institute. America’s New Climate Economy: A Comprehensive Guide to the Economic Benefits of Climate Policy in the United States. n.d. https://www.wri.org/research/americas-new-climate-economy-comprehensive-guide-economic-benefits-climate-policy-united.

Wikipedia

{{cite report |author=World Resources Institute |title=America’s New Climate Economy: A Comprehensive Guide to the Economic Benefits of Climate Policy in the United States |url=https://www.wri.org/research/americas-new-climate-economy-comprehensive-guide-economic-benefits-climate-policy-united |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendamericas, author = {{World Resources Institute}}, title = {{America’s New Climate Economy: A Comprehensive Guide to the Economic Benefits of Climate Policy in the United States}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/americas-new-climate-economy-comprehensive-guide-economic-benefits-climate-policy-united}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }