1. D EPARTMENT OF A GRICULTURAL, E NVIRONMENTAL, AND D EVELOPMENT E CONOMICS 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/

2. Introduction Motivation Ohio Energy Profile Green Energy and Employment Agriculture and Alternative Energy Green Energy Strategy Conclusion

3. Ohio’s Senate Bill 221 requires 25% of the state’s 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 Motivation In the green energy race, Ohio is definitely starting off behind and other states won’t be waiting for Ohio to catch up

4. Renewable Energy Breakdown Ohio generates far less renewable energy as a percentage than the U.S. as a whole Additionally, Ohio’s distribution of the renewable energy generation looks very different from the U.S.

5. Replacing Coal with Wind Our previous paper showed that replacing 25% of Ohio’s 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 isn’t that large to begin with

6. Employment by Energy Source

7. Cost by Energy Source The average levelized cost is the present value of all costs including building and operating the plants. Ohio’s 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)

8. 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 Ohio’s total economy experienced a growth rate of -2.2% over this time frame Most green jobs are not in green energy Green Jobs

9. 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 20002009-2000Years to Make Up StateClean JobsTotal Jobs LostCurrent Job Loss Ohio33,413551,000331 Michigan21,546800,100303

10. 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 Carbon Emissions

11. 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 concerns–some consider it an eyesore, noise, bats, birds, and other wildlife effects to consider

12. Ohio’s Wind Potential

13. 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

14. Ohio’s Biofuel Potential

15. 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 Advantages of Ohio Alternative Energy

16. 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

17. U.S. Energy Grid

18. Ohio’s Disadvantages It’s important to look at Ohio’s resources especially compared to other areas Solar is just not one of Ohio’s resources especially compared to other areas such as Arizona and California and the southwest region in general

19. Just because lacking solar resources doesn’t mean there’s not a place for Ohio in the green economy We need to be economically strategic when considering our green jobs strategy It’s important that we don’t just play follow the leader, but consider Ohio’s unique resources and find where Ohio fits into the green economy Use Ohio’s 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 Economically Strategic

20. 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) Taking Strategic Action

21. Ohio’s Current Green Energy Strategy

22. 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 Conclusion

23. Questions