Political Economy Research Institute (PERI)

By Amanda Novello - Data for Progress, July 2021

Government stimulus is sorely needed: more than a year into the pandemic recession, nearly 10 percent of Black workers are unemployed, and over 6 percent of all workers are unemployed. There are still more than 7 million fewer jobs than there were last June, and nearly 40% of all unemployed workers are long-term unemployed. A majority of those out of work have no college degree. In addition, there are 5 million fewer people in the labor force than pre-pandemic, including 3 million women who left the labor force since last February, and 2 million men.

Decarbonizing the economy in tandem with a full, job centered green recovery, will require many different plans to be executed at all levels of government and society. That’s why, this March, Data for Progress and Evergreen Action released the Clean Jumpstart 2021 report that offers 39 policy priorities for how to carry out our existing commitments, while increasing ambition and creating good jobs that Americans desperately need, in communities that need them most. All components of this plan are popular with likely voters. The Clean Jumpstart 2021 plan represents how a bold climate investment package, like the American Jobs Plan, could tackle the climate crisis and build a clean energy economy.

The Clean Jumpstart 2021 plan would invest a total of $2.3 trillion over four years. Some investments would create jobs more or less immediately, while others will take longer to realize full job-creation effects. Therefore, in this memo, we estimate that the plan would create an average of 2.7 million jobs annually for the first five years. But the job benefits of the plan don’t end there. The policies in Clean Jumpstart would also create up to 960,000 jobs annually for five years following (year 6-10 after investments begin). Approximately 40 percent of all jobs created would be “direct” jobs, or employment working directly toward these policy goals, and the rest would be due to additional work generated along supply chains and in communities due to the multiplied impacts of increased demand.

Read the text (PDF).

By Staff - Sunflower Alliance, June 10, 2021

Nineteen labor organizations—including unions representing refinery workers in Northern and Southern California and the Alameda Labor Council— have endorsed a detailed plan for an equitable transition to a clean-energy economy in California.

This major new report, A Program for Economic Recovery and Clean Energy Transition in California, details programs for meeting California’s 2030 climate goal (40 percent economy-wide reduction in greenhouse gas emissions from the state’s 1990 level) by creating roughly 418,000 jobs. It argues that state policy should ensure that the jobs created are good-paying jobs with full labor rights and access by historically excluded people.

The same strategies, the report says, could be continued to meet California’s longer-term goal of being carbon-neutral by 2045.

The report was commissioned by the American Federation of State, County and Municipal Employees Local 3299, the California Federation of Teachers, and the United Steelworkers Local 675. Its authors are faculty members of the University of Massachusetts at Amherst, including Robert Pollin, a leading expert on just transition.

The report provides detailed calculations for strategies outlined in an earlier report, Putting California on the High Road, from the UC Labor Center. Both reports emphasize the need for measures to protect fossil fuel industry workers including:

• Pension guarantee for all workers.
• Re-employment and income-level guarantees for all displaced workers.
• Retraining and relocation support as needed.
• “Glide-path income support” for workers 60 – 64.

The report comes as the Newsom administration is developing a report on Just Transition in California.

By Robert Kuttner and Robert Pollin - The American Prospect, June 10, 2021

Robert Pollin interviewed by C.J. Polychroniou - Truthout, June 10, 2021

Robert Pollin, distinguished professor of economics and co-director of the Political Economy Research Institute (PERI) at the University of Massachusetts at Amherst, has been spearheading national and international efforts to tackle the climate crisis for more than a decade. Over the past few years, he and a group of his colleagues at PERI have produced green economy transition programs for numerous states. The latest such program is for California, and it is being released today.

The massive study — nearly 200 pages long — shows how California can become a zero emissions economy by 2045 while expanding good job opportunities throughout the state. Nineteen unions have already endorsed the green transition plan, making clear that they reject frameworks that falsely pit labor priorities and the environment against each other, and more are expected to do so in the days and weeks ahead.

In this interview for Truthout, Pollin, co-author with Noam Chomsky of Climate Crisis and the Global Green New Deal: The Political Economy of Saving the Planet (Verso 2020), talks about the climate stabilization project for California and the national implications of union support for a green economy transition.

C.J. Polychroniou: California has been at the forefront of the climate fight for years now, but the truth of the matter is that its efforts have fallen short. Now, you and some colleagues of yours at PERI have just completed a commissioned climate stabilization project for California. How does the project envision the clean energy transition to take place in a manner consistent with the emission targets set out by the UN Intergovernmental Panel on Climate Change (IPCC) in 2018, and how will it be financed?

Robert Pollin: This study presents a recovery program for California that will also build a durable foundation for an economically robust and ecologically sustainable longer-term growth trajectory. California has long been a national and global leader in implementing robust climate stabilization policies. This includes the 2018 Executive Order B-55-18 by then Gov. Jerry Brown. This measure committed the state to cut CO2 emissions by 50 percent as of 2030, to become carbon neutral no later than 2045, and to produce net negative emissions thereafter. These goals are somewhat more ambitious than those set out by the IPCC in 2018. Our study outlines a program through which the state can achieve its own established goals.

Our study shows how these 2030 and 2045 emissions reduction targets can be accomplished in California through phasing out the consumption of oil, coal and natural gas to generate energy in the state, since burning fossil fuels to produce energy is, by far, the primary source of CO2 emissions, and thereby, the single greatest factor causing climate change. The project we propose is to build a clean energy infrastructure to replace the existing fossil fuel-dominant infrastructure. The clean energy infrastructure will require large-scale investments to, first, dramatically raise energy efficiency standards in the state and, second, to equally dramatically expand the supply of clean renewable energy supplies, including solar and wind primarily, with supplemental supplies from low-emissions bioenergy, geothermal and small-scale hydro power. We show how this climate stabilization program for California can also serve as a major new engine of job creation and economic well-being throughout the state, both in the short- and longer run.

By Robert Pollin, Jeannette Wicks-Lim, Shouvik Chakraborty,Caitlin Kline, and Gregor Semieniuk - Department of Economics and Political Economy Research Institute (PERI); University of Massachusetts-Amherst, June 10, 2021

This study presents a robust climate stabilization project for California. It demonstrates that achieving the state’s official CO₂ emissions reduction targets—a 50 percent emissions cut by 2030 and reaching zero emissions by 2045—is a realistic prospect. This climate stabilization project can also serve as a major engine of economic recovery and expanding economic opportunities throughout the state. This includes an increase of over 1 million jobs in the state through investment programs in energy efficiency, clean renewable energy, public infrastructure, land restoration and agriculture. The study also develops a detailed just transition program for workers and communities in California that are currently dependent on the state’s fossil fuel industries for their livelihoods. In particular, we focus here on condi­tions in Kern, Contra Costa, and Los Angeles counties.

The study is divided into nine sections:

1. Pandemic, Economic Collapse, and Conditions for Recovery
2. California’s Clean Energy Transition Project
3. Clean Energy Investments and Job Creation
4. Investment Programs for Manufacturing, Infrastructure, Land Restoration and Agri­culture
5. Total Job Creation in California through Combined Investment Programs
6. Contraction of California’s Fossil Fuel Industries and Just Transition for Fossil Fuel Workers
7. County-level Job Creation, Job Displacement, and Just Transition
8. Achieving a Zero Emissions California Economy by 2045
9. Financing California’s Recovery and Sustainable Transition Programs

Nineteen labor unions throughout California have endorsed this study and its findings.

Read the text (PDF).

By Elizabeth Perry - Work and Climate Change Report, June 3, 2021

A new report by Jeremy Brecher of the Labor Network for Sustainability (LNS) was released in May. Making “Build Back Better” Better: Aligning Climate, Jobs, and Justice is a cast as a “living document” to provide a framework for discussion by the labour and environmental movements. Common Dreams summarizes it here. Brecher begins by identifying the range of climate-related policy proposals in the U.S.: “There are many valuable plans that have been proposed in addition to Build Back Better. The original Green New Deal resolution sponsored by Sen. Ed Markey and Rep. Alexandria Ocasio-Cortez; the THRIVE (Transform, Heal, and Renew by Investing in a Vibrant Economy) Agenda ; the Evergreen Action Plan; the Sierra Club’s “How to Build Back Better” economic renewal plan; the AFL-CIO’s “Energy Transitions”proposals; the BlueGreen Alliance’s “Solidarity for Climate Action,” and a variety of others. All offer contributions for overall vision and for policy details.” 

The contribution of this report from LNS is to frame these policy proposals around “six essential elements” : • Managed decline of fossil fuel burning • Full-spectrum job creation • Fair access to good jobs • Labor rights and standards • Urgent and effective climate protection • No worker or community left behind. The new report links to many of the previous LNS reports which have discussed these elements in more detail.

Labor Network for Sustainability has endorsed the THRIVE Agenda, with its strong emphasis on climate justice. At the end of April, The THRIVE Act was introduced in the U.S. Congress, spearheaded by Representative Debbie Dingell of Michigan and Senator Ed Markey of Massachusetts, and supported by progressive Democrats, environmentalists, and unions. The Rolling Stone summarized the provisions here , stating: “Bold” may be an understatement. While President Biden’s proposed infrastructure plan calls for spending $2 trillion over the next 10 years, the THRIVE Act green-lights the investment of $1 trillion annually. The money would go toward creating an estimated 15 million “family-sustaining” union jobs, rebuilding the nation’s physical and social infrastructure, and cutting carbon emissions in half by 2030.”

The Green New Deal Network has compiled extensive documentation of the economic studies behind the THRIVE Agenda here , based heavily on the work of the Political Economy Research Institute (PERI), led by Robert Pollin.

By Autumn Long and Ted Boettner - Ohio River Valley Institute, May 25, 2021

As a recent article in Forbes noted, the ‘dam has broken’ in West Virginia for solar power. While solar energy comprises less than 0.2 percent of electricity production in the state today, the market for solar energy is marching forward. Despite not having a renewable energy portfolio standard – which would require that utilities get a certain percentage of the electricity they sell in the state from renewable resources – like 30 other states, West Virginia lawmakers have started opening more doors for solar power. For example, state lawmakers this year legalized purchase power agreements (PPAs) to allow third parties to own and operate solar installations for customers while charging them a fixed rate that is typically lower that what the customer pays for electricity. In 2020, the West Virginia Legislature created a utility solar program that allows the state’s investor-owned utilities (FirstEnergy and American Electric Power) to produce as much as 200 megawatts of solar electricity each.

A flurry of new solar projects is now under development in the state. Toyota announced plans to spend $4.9 million to construct a 2.6-Megawatt solar array at its manufacturing plant in Buffalo, West Virginia. In October 2020, the WV Public Service Commission approved plans for a $90 million investment to build a 90-Megawatt solar farm in Raleigh County. Earlier this year, a 100-Megawatt utility-scale solar project was announced at the former Dupont Potomac River Works manufacturing facility in Berkeley County. And earlier this month, Nitro Construction Services acquired local solar installation company Revolt Energy, with plans to expand operation throughout the state on former coal mine sites. Revolt had recently installed a 487-kilowatt rooftop solar array (1,200 solar panels) at Nitro Construction Services’ headquarters in Putnam County.

According to the Solar Energy Industries Association (SEIA), West Virginia ranks last (50^th) in solar production in the nation with just 11.2 megawatts of installed solar power and less than $35 million in total solar investment in the state. Total solar jobs in the state were just 311 in the 4th quarter of 2020, with 18 solar companies operating in the state. Between 2012 and 2020, the number of solar jobs in West Virginia has grown by 241.

An October 2020 report by E2 found that jobs in solar pay close to what jobs in the coal, oil, and gas industries pay, $24.48 an hour (median) compared to $24.37 an hour (median), respectively. Approximately 10 percent of solar industry jobs are unionized, according to the Solar Foundation, which is above the national average and similar to levels found throughout the construction industry. Wage data for solar employment is not available for West Virginia, but it is likely below the national average.

There are a number of policy proposals at the federal level that could lead to significant acceleration in West Virginia’s solar industry. President Biden’s American Jobs Plan includes two key provisions, including a 10-year extension of the federal solar Investment Tax Credit (ITC), which currently offers a 26% tax credit for solar installations, and an expanded direct cash payment in lieu of the ITC that allows solar owners to receive money even if they don’t have taxable income, much like a refundable tax credit. A cash grant option would ensure equitable benefits of the ITC are accessible to low- and moderate-income households, people with low tax liability, and nonprofit institutions such as schools, churches, local governments, and rural electric cooperatives.

By C.J. Polychroniou - Truthout, April 22, 2021

Earth Day has been celebrated since 1970, an era which marks the beginning of the modern environmental movement, with concerns built primarily around air and water pollution. Of course, the state of the environment has shifted dramatically since then, and while environmental policy has changed a lot in the United States over the past 50 years, biodiversity is in great danger and the climate crisis threatens to make the planet uninhabitable.

On the 51st anniversary of Earth Day, world-renowned scholar and public intellectual Noam Chomsky, institute professor emeritus at Massachusetts Institute of Technology, laureate professor of linguistics and also the Agnese Nelms Haury chair in the Agnese Nelms Haury Program in Environment and Social Justice at the University of Arizona; and leading progressive economist Robert Pollin, distinguished professor of economics and co-director of the Political Economy Research Institute at the University of Massachusetts at Amherst, share their thoughts on the state of planet Earth in this exclusive interview for Truthout.

C.J. Polychroniou: The theme of Earth Day 2021, which first took place in 1970 with the emergence of environmental consciousness in the U.S. during the late 1960s, is “Restore Our Earth.” Noam, how would you assess the rate of progress to save the environment since the first Earth Day?

Noam Chomsky: There is some progress, but by no means enough, almost anywhere. Evidence unfortunately abounds. The drift toward disaster proceeds on its inexorable course, more rapidly than rise in general awareness of the severity of the crisis.

To pick an example of the drift toward disaster almost at random from the scientific literature, a study that appeared a few days ago reports that, “Marine life is fleeing the equator to cooler waters — this could trigger a mass extinction event,” an eventuality with potentially horrendous consequences.

It’s all too easy to document the lack of awareness. One striking illustration, too little noticed, is the dog that didn’t bark. There is no end to the denunciations of Trump’s misdeeds, but virtual silence about the worst crime in human history: his dedicated race to the abyss of environmental catastrophe, with his party in tow.

They couldn’t refrain from administering a last blow just before being driven from office (barely, and perhaps not for long). The final act in August 2020 was to roll back the last of the far-too-limited Obama-era regulations to have escaped the wrecking ball, “effectively freeing oil and gas companies from the need to detect and repair methane leaks — even as new research shows that far more of the potent greenhouse gas is seeping into the atmosphere than previously known … a gift to many beleaguered oil and gas companies.” It is imperative to serve the prime constituency, great wealth and corporate power, damn the consequences.

Indications are that with the rise of oil prices, fracking is reviving, adhering to Trump’s deregulation so as to improve profit margins, while again placing a foot on the accelerator to drive humanity over the cliff. An instructive contribution to impending crisis, minor in context.

By Joe Uehlein - Labor Network for Sustainability, April 21, 2021

The approach of the 40th anniversary of Earth Day on April 22 provides us an opportunity to reflect on the “long, strange trip” shared by the environmental movement and the labor movement over four decades here on Spaceship Earth.

A billion people participate in Earth Day events, making it the largest secular civic event in the world. But when it was founded in 1970, according to Earth Day’s first national coordinator Denis Hayes, “Without the UAW, the first Earth Day would have likely flopped!”

Less than a week after he first announced the idea for Earth Day, Senator Gaylord Nelson presented his proposal to the Industrial Union Department of the AFL-CIO. Walter Ruther, President of the UAW, enthusiastically donated $2000 to help kick the effort off ““ to be followed by much more. Hayes recalls:

“The UAW was by far the largest contributor to the first Earth Day, and its support went beyond the merely financial. It printed and mailed all our materials at its expense — even those critical of pollution-belching cars. Its organizers turned out workers in every city where it has a presence. And, of course, Walter then endorsed the Clear Air Act that the Big Four were doing their damnedest to kill or gut.”

Some people may be surprised to learn that a labor union played such a significant role in the emergence of the modern environmental movement. When they think of organized labor, they think of things like support for coal and nuclear power plants and opposition to auto emissions standards.

When it comes to the environment, organized labor has two hearts beating within a single breast. On the one hand, the millions of union members are people and citizens like everybody else, threatened by air and water pollution, dependent of fossil fuels, and threatened by the devastating consequences of climate change. On the other hand, unions are responsible for protecting the jobs of their members, and efforts to protect the environment sometimes may threaten workers’ jobs. First as a working class kid and then as a labor official, I’ve been dealing with the two sides of this question my whole life.

By Elizabeth Perry - Work and Climate Change Report, April 19, 2021

The Sierra Club U.S. report How to Build Back Better: A 10-year Plan for Economic Renewal is a blueprint for economic renewal – in which the environmental advocacy group continues to demonstrate clear support for the needs of workers. Released in March, this report includes a call for public investments which “must come with ironclad labor and equity standards to curb racial, economic, and gender inequity instead of reinforcing the unjust status quo.” To support the job quality theme, the Sierra Club also released a 1-pager titled Cross-cutting environmental, labor and equity standards and a 3-page summary titled Why Standards Matter, an overview of job quality issues .

Briefly, the Sierra Club recommends a pandemic recovery plan which would create over 15 million good jobs, based on public investment of $1 trillion per year for ten years. Investments would go to many sectors including infrastructure and clean manufacturing, but also the care sector and the public sector. In addition to job creation, the plan addresses systemic racism, supports public health, and cuts climate pollution nearly in half by 2030. The economic renewal plan is based on the THRIVE Agenda, which is itself based on job projections and modelling by academics at the Political Economy Research Institute (PERI), led by Robert Pollin. Their latest analysis was published by PERI as Employment Impacts of Proposed U.S. Economic Stimulus Programs (March 2021). Sierra Club released a 3-page summary of job projections; an interactive Jobs Calculator ; and Fact Sheets for each of the sectors considered: regenerative agriculture, clean energy, care and public sector, transportation, manufacturing, buildings, and clean water for all, and pollution-free communities. All these accompanying documents, along with the full report, are available here.

THRIVE stands for “Transform, Heal, and Renew by Investing in a Vibrant Economy” and is summarized in the Sierra Club press release of March 25. The coalition has grown out of the Green New Deal Network, itself a coalition of 15 U.S. organizations that are focused on combating social inequity and environmental destruction through political action.