DEPARTMENT OF AGRICULTURAL, ENVIRONMENTAL, AND DEVELOPMENT ECONOMICS aede.osu.edu
DEPARTMENT OF AGRICULTURAL, ENVIRONMENTAL, AND DEVELOPMENT ECONOMICS aede.osu.edu Making Green Jobs Work for Ohio March 3, 2011 Ohio Farm Bureau Federation Amanda Weinstein Swank Program in Rural-Urban Policy http://aede.osu.edu/programs/swank/ Introduction
Motivation Ohio Energy Profile Green Energy and Employment Agriculture and Alternative Energy Green Energy Strategy Conclusion Motivation Ohios Senate Bill 221 requires 25% of the states electricity to be generated from alternative energy and at least half of that from renewable sources such as solar or wind by 2025 In his State of the Union address, President Obama stated a national goal of obtaining 80% of our electricity from clean energy sources by 2035 Ohio 2009 Electricity Generation by Source U.S. 2009 Electricty Generation by Source 0.43% 0.19% Coal
Petroleum 0.78% 9.91% 2.75% Natural Gas 6.64% 3.48% 19.69% 47.06% Nuclear 85.93% Hydro Other Renewables 22.35%
0.79% In the green energy race, Ohio is definitely starting off behind and other states wont be waiting for Ohio to catch up Renewable Energy Breakdown Ohio generates far less renewable energy as a percentage than the U.S. as a whole Additionally, Ohios distribution of the renewable energy generation looks very different from the U.S. 2008 Ohio Renewable Energy Generation 4000 Thousand Megawatthours 3000 2000 1000 0 l
na o ti e th en o v n Ge Co o dr y H rm al la So
r s te as as G as l m W fil io d d B n r oo La
he / W t c / i O d en oo g o W Bi SW M d in W
Replacing Coal with Wind Our previous paper showed that replacing 25% of Ohios electricity with electricity generated from wind would decrease carbon emissions by approximately 58 billion pounds It would also increase energy costs for consumers by about $1.4 billion Ohio would gain at most 6,000 net jobs, and at worst, lose 1,000 net jobs. Energy generation is capital intensive not labor intensive There are significant displacement effects Although green energy jobs have been experiencing significant growth, the energy sector isnt that large to begin with Employment by Energy Source Average Facility Employment (Jobs/kWh) 1.40E-06 1.21E-06 1.20E-06 1.00E-06
8.46E-07 8.00E-07 6.00E-07 4.00E-07 2.00E-07 3.24E-07 1.15E-07 1.08E-07 8.90E-08 3.18E-07 8.11E-08 0.00E+00 Coal Natural Gas Biomass LowBiomass High Wind Low
Implications for efficiency and productivity Wind High Solar Low Solar High Cost by Energy Source 2016 U.S. Average Levelized Cost (2008 cents/kWh) 45.00 39.61 40.00 35.00 30.00 25.00 20.00 14.93 15.00
Wind Solar Geothermal The average levelized cost is the present value of all costs including building and operating the plants. Ohios lower energy costs are in part due to the significance of coal in energy generation (also implies that the demand for energy efficient products will be lower) Green Jobs In 2007, Ohio had approximately 35,257 clean jobs From 1998 to 2007 clean jobs experienced a growth rate of 7.7% (0.85% annualized) while Ohios total economy experienced a growth rate of 2.2% over this time frame
Most green jobs are not in green energy Ohio Jobs in the Clean Energy Economy Conservation and Pollution Mitigation 7.94% 3.26% 15.22% Clean Energy Energy Efficiency 10.36% 63.22% Environmentally Friendly Production Training and Support Ohio Green Jobs With a declining manufacturing industry, Ohio
employment has been struggling. Unemployment is still approximately 9.3% Total number of jobs in Ohio is 6,304,302. Although growing at an annualized rate of 0.85%, only 0.56% of jobs are clean in Ohio 2000 2009-2000 Years to Make Up Clean Jobs Total Jobs Lost Current Job Loss Ohio 33,413
551,000 331 Michigan 21,546 800,100 303 State Carbon Emissions Life Cycle Emission Rates (lbs CO2/kWh) 2.5 2.08 2 1.5
Biomass Wind 0.08 0.03 Solar Photovoltaic Geothermal Life cycle emissions rates include the total aggregated emissions over the life cycle of the fuel to include extraction, production, distribution, and use. Also implies that buying an electric car is less green in Ohio and demand will be lower Agriculture and Alternative Energy Although the employment effects may not be large, alternative energy has the potential to be very good for agriculture Wind energy- it may look different but something
about it fits lifestyle, continue farming, additional income, etc. Wind concernssome consider it an eyesore, noise, bats, birds, and other wildlife effects to consider Ohios Wind Potential Agriculture and Biofuel Alternative energy from biomass can also be a natural fit for Ohio Ohio climate is clearly conducive to growing corn which can be used in corn-based ethanol, algae used to make algae oil, and producing other biofuels Some biofuel concerns raises price of corn affecting other agriculture sectors and food prices Ohios Biofuel Potential
Advantages of Ohio Alternative Energy Ohio has some often overlooked advantages when it comes to alternative energy Established transmission lines population and manufacturing centers, significance of coal A recent article calls transmission lines the missing link in energy evolution. Because wind and solar are more land intensive, renewable energy must be located away from population centers (even farther than coal power plants) requiring significant power lines for transmission. To keep this an advantage need to continue to maintain and upgrade transmission lines and establish smart grid U.S. Population Density The Dayton/Columbus region is one of two centroids in the U.S. because of its proximity to a large share of the U.S. population and manufacturing centers U.S. Energy Grid
Ohios Disadvantages Its important to look at Ohios resources especially compared to other areas Solar is just not one of Ohios resources especially compared to other areas such as Arizona and California and the southwest region in general Economically Strategic Just because lacking solar resources doesnt mean theres not a place for Ohio in the green economy We need to be economically strategic when considering our green jobs strategy Its important that we dont just play follow the leader, but consider Ohios unique resources and find where Ohio fits into the green economy Use Ohios strengths while considering the strengths of other states competing for green jobs and businesses We need to find out how our strengths can fill green energy gaps Taking Strategic Action More manufacturing experience than the U.S. Build energy efficient products for households, businesses, and the
alternative energy industry First Solar in Perrysburg, OH largest producer of thin film solar panels Meters and advanced instrumentation Help with intermittent nature of alternative energy Update energy grid and invest in a smart grid Columbus, Cincinnati, and Cleveland are all experimenting with new smart meters Innovation and R&D in alternative energy Energy storage and transmission (battery patents) Ohios Current Green Energy Strategy Ohio Third Frontier Green Economy Spending $350,000 Conservation and Pollution Mitigation $81,640,558 $101,026,479
$10,102,044 $5,418,095 Clean Energy Energy Efficiency Environmentally Friendly Production Training and Support Conclusion Continue to support: Alternative energy research and development and innovation Renewable energy projects Energy efficiency Conservation and pollution mitigation Increase attention and support for: Environmentally friendly production and manufacturing Transmission and storage of renewable energy
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