In response to an email asking about climate policy and green jobs:
I know of no mainstream economist who thinks that green jobs will lead us out of recession (or reduce the unemployment rate during periods of economic growth). I think many of us agree that a greener economy is a good thing in terms of improved health and environmental quality. A greener economy will result is more green jobs and fewer brown jobs but it is hard to imagine how government policy that constrains business firms will result in improved macroeconomic performance.
The only avenue for the latter is if improved local air quality improves health to such an extent that labor productivity improves. This transmission would occur only in the long run ... not in time to lead us out of recession. On the other hand, much of the health benefits of improved local air quality have occurred since the passage of the Clean Air Act. I think that diminishing returns set in awhile ago.
I'm happy to be wrong about my first sentence (or any of it for that matter). Any suggestions?
