By Isabella Kaminski

The report from the Brookings Institution, Sizing the Clean Economy, examines the state of the US ‘clean economy’ at both national and state level.

It defines the ‘clean economy’ as organisations producing goods and services with an environmental benefit – including renewable energy. It says that the clean economy as a whole employs more workers than the fossil fuel industry. Although renewable energy is only a small part of this, it is considered one of the most high-profile sectors.

In 2010, the US renewable energy sector employed over 130,000 people, with hydropower leading the way with over 55,000 jobs; the overall clean economy employs around 2.7 million people.

From 1996 to 2003, four of the five fastest-growing segments were in renewable energy. “Solar thermal grew at a torrid pace, expanding by18.4 percent annually over the seven years and adding 3,700 jobs,” says the report. “The wind power industry added 15,000 jobs, growing 14.9 percent per year. Solar PV added 12,286 jobs with 10.7 percent average annual growth. Moreover, biofuels, another renewable segment, added 9,300 jobs with 8.9 percent growth each year over the period.”

But the report is critical of the lack of a coherent carbon pricing system which, it says, places clean economy goods and services, including renewable energy, at a serious price disadvantage. According to the Brookings Institution, inadequate access to low-cost end-user financing for energy efficient retrofits and renewable energy installations are a hurdle to strong market growth.

Researchers noted two particular policy problems that directly affect the renewable energy sector. The first problem is the lack of a national clean or renewable energy standard, which would require utility companies to acquire a percentage of their electricity from renewable and other clean energy sources. According to the report the lack of such a binding law “has likely depressed demand for clean solutions”.

The second stated problem is the lack of an adequate transmission capacity to deliver the energy. The report says a host of policy problems involving the planning, financing, siting, licensing, and building of transmission lines has contributed to delivery ‘bottlenecks’.

The report also criticises large utility companies for being slow to take up renewable energy.

The report says: “Congress and the federal government could help by putting a price on carbon, passing a national clean energy standard (CES), and moving to ensure more rational cost recovery on new transmission links for the delivery of renewable energy to urban load centers. States can adopt or strengthen their own clean energy standards, reduce the initial costs of energy efficiency and renewable energy adoption, and pursue electricity market reform to facilitate the use of clean and efficient solutions.”

To read the full report visit the BrookingsInstitution website.