US Bureau of Labor Statistics Publishes Definition of Green Jobs

[Federal Register: September 21, 2010 (Volume 75, Number 182)]
[Page 57506-57514]

Final BLS definition of green jobs. BLS has developed this definition of green jobs for use in data collection in two planned surveys.

Green jobs are either:

• A. Jobs in businesses that produce goods or provide services that benefit the environment or conserve natural resources.
• B. Jobs in which workers' duties involve making their establishment's production processes more environmentally friendly or use fewer natural resources.
  

The BLS approach to identifying each type of green job for measurement purposes is described in more detail below. The planned BLS surveys may identify and count some jobs in both surveys.

• A. Jobs in businesses that produce goods and provide services that
  benefit the environment or conserve natural resources. These goods and
  services are sold to customers, and include research and development,
  installation, and maintenance services. This definition will be used in
  the BLS survey of establishments in industries that produce green goods
  and services. Green goods and services fall into one or more of five
  groups:
  
  
  
  1. Energy from renewable sources. Electricity, heat, or fuel
     generated from renewable sources. These energy sources include wind,
     biomass, geothermal, solar, ocean, hydropower, landfill gas, and
     municipal solid waste.
  
  
  2. Energy efficiency. Products and services that improve energy
     efficiency. Included in this group are energy-efficient equipment,
     appliances, buildings, and vehicles, as well as products and services
     that improve the energy efficiency of buildings and the efficiency of
     energy storage and distribution, such as Smart Grid technologies.
  
  
  3. Pollution reduction and removal, greenhouse gas reduction, and
     recycling and reuse. These are products and services that:
  • Reduce or eliminate the creation or release of pollutants or toxic compounds, or remove pollutants or hazardous waste from the environment.
  • Reduce greenhouse gas emissions through methods other than renewable energy generation and energy efficiency, such as electricity generated from nuclear sources.
  • Reduce or eliminate the creation of waste materials; collect, reuse, remanufacture, recycle, or compost waste materials or wastewater.
  
  
  4. Natural resources conservation. Products and services that conserve natural resources. Included in this group are products and services related to organic agriculture and sustainable forestry; land management; soil, water, or wildlife conservation; and stormwater management.
  
  
  5. Environmental compliance, education and training, and public awareness. These are products and services that:
     
     • Enforce environmental regulations.
     • Provide education and training related to green technologies and practices.
     • Increase public awareness of environmental issues.
     
     
• B. Jobs in which workers' duties involve making their establishment's production processes more environmentally friendly or use fewer natural resources. These workers research, develop, maintain, or use technologies and practices to lessen the environmental impact of their establishment, or train the establishment's workers or contractors in these technologies and practices. This definition will be used in the BLS survey of establishments across all industries to identify jobs related to green technologies and practices used within the establishment. These technologies and practices fall into one or more of four groups:
  
  
  
  1. Energy from renewable sources. Generating electricity, heat, or
     fuel from renewable sources primarily for use within the establishment.
     These energy sources include wind, biomass, geothermal, solar, ocean,
     hydropower, landfill gas, and municipal solid waste.
  
  
  2. Energy efficiency. Using technologies and practices to improve energy efficiency within the establishment. Included in this group is cogeneration (combined heat and power).
  
  
  3. Pollution reduction and removal, greenhouse gas reduction, and recycling and reuse. Using technologies and practices within the establishment to:
     
     • Reduce or eliminate the creation or release of pollutants or toxic compounds, or remove pollutants or hazardous waste from the environment.
     • Reduce greenhouse gas emissions through methods other than renewable energy generation and energy efficiency.
     • Reduce or eliminate the creation of waste materials; collect, reuse, remanufacture, recycle, or compost waste materials or wastewater.
  
  
  4. Natural resources conservation. Using technologies and practices
     within the establishment to conserve natural resources. Included in
     this group are technologies and practices related to organic
     agriculture and sustainable forestry; land management; soil, water, or
     wildlife conservation; and stormwater management.

Read the entire federal document. See also our forum: what is a green job?

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How Can Governments Stimulate the Creation of Green Jobs?

Recently a friend of mine asked me what the government could do to stimulate the creation of green jobs. He was meeting with state-level officials the next day. I told him that since we are in a free market economy, the first law governing us is the law of supply and demand. No demand, no supply; no supply, no jobs. So a sure way for a government (federal, state or local) to stimulate the creation of green jobs is to stimulate the demand for green products.

Of course, it is also possible to work on the supply side by helping manufacturers in the hope that prices will drop to stimulate demand, but that's a more risky proposition that can end up creating excess inventory. The federal government and some states have attempted to stimulate the creation of green manufacturing jobs by introducing several financial aid programs for manufacturers such as tax breaks or loan guarantees (beneficiaries include Tesla Motors, Calera and BrightSource Energy.) But helping manufacturers boost production does not make consumers want to buy their products. The risk of theses financial aid tools is that production will increase, but inventories of unsold goods will increase also. For these financial programs to be successful, the manufacturers must use them either to lower their prices or become more competitive. Lowering the price of manufactured goods will affect demand in some way, but the cost reduction must reach the consumer to be effective. But it's difficult to achieve when there are intermediaries between manufacturers and consumers such as distributors, retailers, and installers. In addition, it would be hard for the government to legally place obligations on the part of the manufacturers to use the financial aid programs to lower prices; it could be construed as price fixing or manipulation.

There are many ways for a government to stimulate demand, but the three that have been used with most success are consumer incentives, direct government purchases, and government mandates. Some indirect means have been used as well, such as the mandatory reduction of carbon emissions by cars, trucks, power plants and factories.

Consumer Incentives
Consumer incentives have been used extensively in the past few years, and especially the past 2 years. They range from popular tax breaks to allowing hybrid car owners to use high-occupancy vehicle lanes regardless of the number of passengers in the car. The cash-for-clunkers and first-time home buyer programs were some of the most successful. There currently exist federal and state-level incentives for all sorts of home improvements that reduce electricity consumption (insulation, windows, doors). The federal government and most states also offer tax rebates to home owners who purchase wind turbines or solar panels and these tax rebates make the purchase of wind turbines or solar panels very attractive (sometimes reaching 50% of the total cost).

Direct Government Purchases
Governments (federal, state and local) can purchase all sorts of green products for their own use, such as hybrid cars for their fleets, and solar panels or wind turbines for government buildings. Substantial works have also started to make government buildings LEED compliant. There is a great article on GreenTechMedia showing Ten Ways the Feds Are Leading the Green Charge.

Government Mandates
Government mandates fall into 2 main categories:

• Governments can stimulate the production of clean energy by mandating that energy/electric production within a state or county includes a minimum of energy produced from clean or renewable sources.
• Governments can also mandate that contractors that bid on state or county jobs utilize some minimum level of renewable energy, or that their truck or car fleets include a minimum of hybrids. A great example of this kind of mandate is the city of Cleveland, OH.

As a taxpayer and consumer, I prefer consumer incentives; that's a great way for my tax dollars to come back to me. Mandates are fine too, but their effects are indirect and can be hard to measure. Government purchases of green products can be controversial, especially when they increase spending.