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Two Approaches to Measuring “Green” Mark Doms Chief Economist Department of Commerce Association of Public Data Users, September 19, 2010 Two Approaches: Qualitative and Quantitative • Qualitative: “Measuring the Green Economy” • Quantitative: “U.S. Carbon Dioxide Emissions and Intensities Over Time: A Detailed Accounting for Industries, Government and Households” Measuring the Green Economy From the 2007 Economic Census product list: – Compile list of green products and services • Conserve energy and other natural resources – Promote ecological conservation – Reduce energy (fossil fuels) consumption • Reduce pollution – Provide clean energy – Prevent, treat, reduce, control or measure environmental damage to air, water and soil – Provide remediation, abatement, removal, transportation, or storage of waste and contaminants also considered to reduce pollution – Calculate the total shipments and receipts for the green products and services – Compare the share of shipments and receipts to corresponding industry and employment level to estimate the number of green jobs in that industry Measuring the Green Economy •Categorizing Green Products and Services codes –Narrow v. Broad Green Product or Service Activity Narrow Category Broad Category X X Pollution Control: This includes products or services that prevent, treat, remediate, or control environmental damage to air, water and soil. The remediation, abatement, removal, transportation, or storage of waste and other contaminants can also be found in this category. – nonhazardous and hazardous waste collection, disposal, remediation and engineering services* – waste transportation X – water treatment and engineering services X X – muffler/exhaust repair X X – organic foods X X – phosphate-free laundry detergent X X – air and water filters and purification equipment X X – nuclear radiation detection and monitoring equipment X X Results: Green Jobs • $371 to $516 billion in the private business economy (1% to 2%) • 1.8m to 2.4m jobs Figure 2 Share of Green ProductDistribution and Service Employment of Green Jobs by Industry, 2007 Across Industry Sectors, 2007 76.9 Share (%) 76.7 10.8 10.1 12.3 12.8 0.2 0.2 Narrow Services Broad Manufacturing Construction Agriculture Green Manufacturing • Between 2002 and 2007, the share of green shipments and green jobs in manufacturing remained fairly constant, ranging between 0.9% and 1.3%. Total manufacturing jobs fell over this period as did jobs in green manufacturing. • The value of shipments per worker in green manufacturing was about equal to the value of shipments per worker in non-green industries. • Green jobs are likely to pay about the same or a bit more than other jobs in the manufacturing sector. Quantitative: Carbon Dioxide Intensity • Industry Detail – Energy related carbon emissions and carbon intensity by detailed industry over time – Relative to other studies: greater industry/economy coverage, industry detail, and time series • Household sector • Government sector (Federal, state and local) – Direct and indirect effects (input-output) – Shared with CBO for their tax/policy analysis • Broad Trends – Based on the industry detail – Examples The Macro View • Energy-related CO2 emissions continue • Overall emissions intensity continues to fall. to rise. Mmt of CO2 Mmt CO2/$billion GDP, 07$ 6,000 0.540 5,950 0.520 5,900 0.500 5,850 5,800 0.480 5,750 0.460 5,700 0.440 5,650 5,600 0.420 5,550 Note: Left axis does not start at zero. Note: “Y” axis does not start at zero. 0.400 5,500 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Emissions by Major Sector CO2 Levels, Mmt 2,000 1998 2002 2006 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Agriculture, Manufacturing Forestry, Mining and Construction Transportation Other Services Government Households Changes in Emission Intensity CO2 Intensity Change, AAG (%) 2.0 1998-2002 2002-2006 1998-2006 1.0 0.0 -1.0 -2.0 -3.0 Agriculture, Forestry, Fisheries, Mining & Construction Manufacturing Transportation Other Services Government Households Emissions and Trade • We can estimate carbon emissions related to domestic production, imports, and exports (using some assumptions). Emissions (Mmt) From Domestic Production Imports Exports Consumption 2006 6,056.7 437.2 291.6 6,202.3 1998 5,728.7 370.3 272.0 5,827.0