The University College of London (UCL) released a new study showing the United States' green economy's impactful growth between 2013–2016. However, its positive effects on the economy may reverse with U.S.President Donald Trump's proposed economic policy.
The green economy aims to provide jobs with low environmental impact, heavily focusing on sustainability, resource efficiency, and social inclusivity.
Currently, the U.S. green economy is estimated to generate more than $1.3 trillion annually. This makes the country a world leader in the field, accounting for 16.5% of the global green economy. The U.S. green economy gives about 9.5 million jobs in the country.
U.S.'s lead in green economy was achieved through rapid growth over the three years in the study by UCL, published in Palgrave Communications. Over 1.5 million jobs were created between 2013–2016, representing a 20% growth in the size and employment figures of the U.S. green economy.
Meanwhile, over the same period, data from the Department of Energy suggest that the coal industry saw a decline of 37,000 jobs.
Trump's 'America First Energy Policy' aims to add 400,000 jobs to the fossil fuel sector industry over the next 30 years, seemingly reversing the rollback of jobs in the coal industry. The policy is aimed at making the U.S. not only energy independent but also dominant in a way that allows the U.S. to export its energy.
Mark Maslin, a professor at UCL's Department of Geography and co-author of the study, says that this kind of policy may be detrimental for the U.S.
"The green economy is of huge importance to the U.S. both in terms of economic growth and employment," he says. "Further investment in the fossil fuel industry is incompatible with economic trends and could end up damaging the U.S. economy as other countries invest more heavily in their green economy."
Maslin also says that given our global climate emergency and the decline in employment in the fossil fuel industry, it only makes sense to focus future investment in the green sector.
In the U.K., a recent FTSE Russell report suggests that globally, green companies tend to generate higher returns than average. This further supports the claim that the green economy helps in improving the overall economy.
While the US is the current global leader in the green sector, other countries are starting to catch up.
Take China, for example. A 2017 Reuters report reveals China's plans to invest $361 billion into renewable energy by 2020. China's "war on pollution" should help the country's air pollution problems, and its plans included the closing of hundreds of factories.
China's moves towards building its green economy might soon help them overtake the U.S. By 2020, China's aiming to create 13 million jobs in the green sector, more than the U.S.'s 9.5 million. With this move, the Asian economic powerhouse aims to have a bigger voice in global climate change discussions.
Meanwhile, the U.S. seems to be poised to go the exact opposite route.
