Clean energy policies and green jobs: An evaluation of green jobs in U.S. metropolitan areas

State and local governments in the U.S. are actively promoting renewable energy and energy efficiency to seek economic development opportunities and create green jobs. This study evaluates the employment effects of state and local clean energy and climate policies in U.S. metropolitan areas (MSAs) in 2006. The regression analysis shows that both state and local clean energy policies have positive and statistically significant impacts on green jobs at the metropolitan level. The results from Two Stage Probit Least Squares (2SPLS) indicate that every additional state clean energy policy tool adopted is associated with 1% more green jobs in the MSA. On average, MSAs with ICLEI membership maintain 9.3% more green jobs than MSAs without ICLEI membership, Ceteris paribus.

► This study evaluates employment effects of state and local clean energy policies. ► We find state clean energy policies have moderate positive impacts on green jobs. ► We find local climate policies have moderate positive impact on green jobs.