AMERICAS NEW CLIMATE ECONOMY: A COMPREHENSIVE GUIDE TO THE ECONOMIC BENEFITS OF CLIMATE POLICY IN THE UNITED STATES

The document argues that the United States can decouple economic growth from carbon emissions, as evidenced by a 25 percent increase in real GDP and a 12 percent fall in energy-related CO2 emissions between 2005 and 2018. It highlights that clean energy is more labor-intensive than fossil fuels, with $1 million spent on renewables or energy efficiency generating 7–8 jobs compared to 2–3 for fossil fuels. The paper emphasizes the falling costs of solar, wind, and battery technologies, noting that new clean energy portfolios are often cheaper than operating existing coal plants. It also discusses the potential for revitalizing rural communities through renewable energy and the necessity of a fair transition for fossil fuel workers to ensure social equity.

• The United States has demonstrated that economic growth can be decoupled from carbon emissions; from 2005 to 2018, real GDP grew by 25 percent while energy-related CO2 emissions decreased by 12 percent.
• Clean energy investments are significantly more effective at creating jobs than fossil fuel investments, with a ratio of approximately 7–8 jobs per $1 million spent for renewables and energy efficiency, versus 2–3 jobs for fossil fuels.
• Low-carbon technologies have seen dramatic cost reductions since 2010, with the benchmark levelized cost of electricity falling by 84 percent for solar PV, 49 percent for onshore wind, and 56 percent for offshore wind.
• A significant portion of the U.S. coal fleet is now more expensive to operate than building new solar and wind energy; approximately 74 percent of existing coal capacity (211 GW) falls into this category.
• The cost of inaction on climate change is high, with potential annual damages estimated between 0.7 percent and 3.8 percent of U.S. GDP by the end of the century if current policies continue, and up to 10 percent in worst-case scenarios.
• Air pollution from fossil fuels causes over 100,000 premature deaths annually in the U.S., with associated damages valued at 4–5 percent of GDP.
• The U.S. lags behind China in renewable energy investment; between 2010 and the first half of 2019, China committed $758 billion to renewables capacity compared to $356 billion by the United States.
• Investment in low-carbon infrastructure is manageable, with conservative estimates suggesting the U.S. would need to increase energy system spending by up to 2 percent of GDP to transition, which is within historical norms.
• Rural households face a higher energy burden than urban households, spending 40 percent more of their income on electricity and heating; low-income rural households spend 9 percent of their income on energy compared to a 3.3 percent national average.
• Tree restoration is identified as the largest near-term carbon removal opportunity in the U.S., with the potential to remove up to 540 megatons of CO2 per year through 2050.
• Subnational climate leadership is significant, with states, cities, and counties committed to Paris Agreement goals representing nearly 70 percent of U.S. GDP and population.

APA

SAHA, D., & JAEGER, J. (2020). AMERICAS NEW CLIMATE ECONOMY: A COMPREHENSIVE GUIDE TO THE ECONOMIC BENEFITS OF CLIMATE POLICY IN THE UNITED STATES. World Resources Institute. https://files.wri.org/s3fs-public/americas-new-climate-economy.pdf

Chicago

SAHA, DEVASHREE, and JOEL JAEGER. AMERICAS NEW CLIMATE ECONOMY: A COMPREHENSIVE GUIDE TO THE ECONOMIC BENEFITS OF CLIMATE POLICY IN THE UNITED STATES. World Resources Institute, 2020. https://files.wri.org/s3fs-public/americas-new-climate-economy.pdf.

Wikipedia

{{cite report |last1=SAHA |first1=DEVASHREE |last2=JAEGER |first2=JOEL |title=AMERICAS NEW CLIMATE ECONOMY: A COMPREHENSIVE GUIDE TO THE ECONOMIC BENEFITS OF CLIMATE POLICY IN THE UNITED STATES |publisher=World Resources Institute |date=July 2020 |url=https://files.wri.org/s3fs-public/americas-new-climate-economy.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{saha2020americas, author = {SAHA, DEVASHREE and JAEGER, JOEL}, title = {{AMERICAS NEW CLIMATE ECONOMY: A COMPREHENSIVE GUIDE TO THE ECONOMIC BENEFITS OF CLIMATE POLICY IN THE UNITED STATES}}, institution = {World Resources Institute}, year = {2020}, month = jul, url = {https://files.wri.org/s3fs-public/americas-new-climate-economy.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }