Measuring the
Green Economy:
An Operational
Approach
Mitch Horowitz
Vice President and Managing Director
Battelle Technology Partnership
Practice
1
Battelle
Who is Battelle?
• The world’s largest non-profit
independent R&D organization
($5+ billion in revenues)
• Worldwide leader in development,
commercialization, and transfer
of technology
• Conducts thousands of projects
for about 1,100 government and
industrial clients each year
• Manages or co-manages six
national laboratories for the U.S.
Department of Energy and two
international laboratories
• Over 20,000 employees worldwide
Technology Partnership
Practice is the economic
development consulting
organization for Battelle
TPP Areas of Expertise:
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Core Competency
Cluster Analysis
Benchmarking
Strategic Planning
Commercialization
Program Design and
Implementation
• Impact Assessment and
Evaluation
• Entrepreneurial Development/
Venture Financing
• Technical Assistance and
Problem Solving
2
Demonstrated Track Record
Battelle TPP has a demonstrated track record in translating
technology strengths into development strategies and initiatives
Highlights of Cleantech Efforts
Broad breadth – TPP projects across
the nation over the past 8 years
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Arizona Sustainable Systems Investment Prospectus
Greater Syracuse Energy and Environmental Cluster
Market Study
West Virginia Technology Blueprint – and follow on
development of strategy for advanced energy
Mississippi Delta Biobased Products Strategy
Recent broad strategies that emphasized cleantech:
– Knoxville-Oakridge Innovation Valley Targets of
Opportunity – solar, biomass and nuclear
– Idaho Core Competency Assessment – biomass
and nuclear
Ongoing projects include:
– Arizona LMI project on green economy
– Brookings Metro Green Economy Industry Study
– Assessment of Renewable and Clean
Technologies Cluster for the Southwest
Pennsylvania Region
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Growing Number of Studies on Green
Economy
• Many state and regional based studies … such as:
– Clean Tech Cluster Analysis for the Puget Sound Region by Workforce
Development Council of Seattle-King County and Puget Sound Regional Council
– Green Jobs in Minnesota: Market Analysis by Minnesota Green Jobs Task Force
with GSP Consulting
– Colorado Cleantech Cluster Analysis by CORE and Evenson & Associates
– Connecticut Renewable Energy/Energy Efficiency Economy by Connecticut
Clean Energy Fund with Navigant Consulting
• National Studies … such as:
– The CleanEnergy Economy by Pew Charitable Trust with Collaborative
Economics
– Green Jobs in U.S. Metro Areas by U.S. Conference of Mayors with Global
Insight
– Job Opportunities for the Green Economy by Umass Amherst Political Economy
Research Institute
• Federal Agencies … such as:
– "Green job" opportunities defined in Workforce Investment Act (WIA)
– U.S. Department of Energy targets for green energy
– Measuring the Green Economy, US DoC – Economics & Statistics Admin.
See Appendix at end of presentation for more details on these studies
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No single definition of green economy
across studies … more than renewable energy,
but how far towards clean technologies is key issue
Common Elements in Defining
Green Economy
• Renewable energy and fuels
– wind; solar PV & thermal; geothermal;
hydropower; ocean/tidal/wave power;
fuel cells; biofuels (e.g., ethanol,
biodiesel, biogas, solid);
• Energy storage and management
– batteries; hydrogen; smart grid systems;
carbon sequestration
• Energy efficiency products and services
– advanced lighting; energy efficient
appliances, HVAC, and building
materials; building controls and
automation
• Green materials
– bio-based polymers, materials, and
fabrics; advanced composites used for
energy efficiency applications; green
chemicals & solvents; recycled materials
Variations in Defining Green
Economy
• Alternative energy
– nuclear; clean coal
• Conservation and pollution prevention
products
– air quality and climate control; water
purification, management, and control;
sewage treatment; pollution
prevention; remediation technologies
& services
• Environmentally friendly production of
existing products
– clean transportation vehicles
– clean manufacturing
– green buildings and
deconstruction/reuse of building
materials
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Views from Arizona Stakeholders
Answer Options
Wind energy
Solar photovoltaic energy
Solar thermal energy
Geothermal energy
Biofuels
Hydropower energy
Ocean/wave power energy
Primary
Green
Economic
Activity
25
26
25
23
18
18
22
Largely a
Green
Economic
Activity
5
5
5
6
8
10
6
Possibly a
Green
Economic
Activity
2
1
1
3
3
4
3
Not a
Green
Economic
Activity
0
0
0
0
2
0
1
Don't Know
0
0
0
0
1
0
0
# Respondents
32
32
31
32
32
32
32
Nuclear energy
Clean coal
Waste-to-energy
Hydrogen
Grid systems/smart metering
Carbon sequestration
3
3
13
14
11
7
10
6
9
7
7
6
5
9
9
8
10
8
14
14
0
1
3
3
0
0
1
2
1
8
32
32
32
32
32
32
Advanced lighting (e.g., CFLs, LEDs)
Energy efficient appliances
Energy efficient building materials
Energy consulting & auditing
Energy development/storage technologies (e.g., batteries)
Hybrid-drive engine technologies
6
8
12
11
11
12
18
15
13
7
7
10
7
6
6
12
13
9
1
3
1
1
1
0
0
0
0
1
0
1
32
32
32
32
32
32
5
4
3
7
6
6
4
7
8
4
8
12
8
12
12
0
1
2
1
0
13
11
12
4
10
32
32
32
32
32
11
8
8
16
11
9
7
4
4
5
9
12
11
7
15
16
16
7
8
8
13
1
2
1
0
1
2
1
1
1
1
0
0
1
4
32
31
31
32
32
31
32
8
3
5
8
4
7
12
15
13
4
10
7
0
0
0
32
32
32
Bio-based polymers
Advanced composites (e.g., electro-chromatic glass)
Nano-materials
Green chemicals
Thermal regulating fibers and fabrics
Air quality & climate control
Water purification
Sewage and solid waste treatment
Recyclable material collection
Materials/products with recycled content
Pollution prevention
Remediation technologies & services
Sustainable land management
Venture capital or investment banking firms specializing in green
Architectural & engineering firms with track record in certified
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How to measure the green economy?
• Use of “top down” sharing of NAICS industries vs.
“bottom up” counting of specific green firm
employment?
– No definition for many renewable energy areas, green materials and
energy efficient products in NAICS (does better for environmental)
– Concerns that NAICS industries are not specific enough – tend to
bundle green industries into broader industry categories (e.g., solar
cells in “semiconductor” NAICS code)
• What source of employment data -- Use of QCEW vs.
D&B
– If we use Quarterly Census Employment and Wages (QCEW) to
measure firm employment might run into disclosure problems and not
be able to present specific employment levels by key green sectors
– But D&B employment data collected for a year is gathered at different
times and may actually not be collected for many firms – the National
Establishment Time Series (NETS) does a good job of ensuring
consistency of firms and addressing missing values
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How to measure the green economy?
• How to handle firms that are not “pure play” green
– Many companies that provide specific green products and services are
not dedicated to exclusively green activities
– Suggest targeting specific locations involved in green products and
services of multi-establishment firms
• What is a green material or energy efficient product?
– Is it just what a manufacturer says or does it need to be certified by a
third party (i.e. “Energy Star” for energy efficiency, “Green Seal” for
paints and coatings and “SmartWood” for wood sourcing)?
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Battelle development measurement of
green industry based on U.S. BLS Federal
Register Notice
• On March 16th, the
U.S. BLS placed a
notice for comments
on an approach to
measuring data on
green jobs
• Green jobs are “jobs
involved in economic
activities that help
protect or restore the
environment or
conserve natural
resources.”
• Seven Categories for green activities
set out:
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Renewable Energy
Energy Efficiency
Greenhouse Gas Reduction
Pollution Reduction and Cleanup
Recycling and Waste Reduction
Agricultural and Natural Resources
Education, Compliance, Public
Awareness and Training
• Measurement will be based on either:
– Output approach which identifies
establishments that produce green goods
and services and counts the associated
jobs based on the 7 categories above
– Process approach which identifies
establishments that use environmentallyfriendly production processes and
practices and counts the associated jobs
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Battelle Measurement Approach
• Battelle identified green firms operating in Arizona based on
a wide assortment of listings of firms involved in production of
green goods and services.
– These listings included green certified products, VC/patent databases,
national association memberships, market research listings, etc.
– Use of listings critical since there is no existing industry classification
for green industries such as solar energy, energy efficient products,
green materials and reduction of greenhouse gases
– The existence and operations of these firms were also verified to the
extent possible through the examination of company websites and
phone calls.
• To measure employment, Battelle used the Dun & Bradstreet
company database and NETS for time series.
– For firms not listed in Dun & Bradstreet (D&B), Battelle looked them up
on the web and contacted them.
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Building More Detailed Segments Using BLS Categories
Agricultural & Natural Resources Conservation
Conservation
Organic Farms & Organic Food Production
Education & Compliance
Compliance
Training
Energy & Resource Efficiency
Architecture & Building Design
Battery & Energy Storage Technologies
Electric/Hybrid Drive Technologies & Vehicles
Energy Consulting & Auditing
Energy Efficient Appliances
Energy Efficient Building Products & Materials
Energy Efficient HVAC
Energy Efficient Lighting
Fuel Cells
Hybrid Drive Technologies/Vehicles
Other Energy Efficient Products
Water Efficient Products
Greenhouse Gas Reduction
Clean Coal
Nuclear Energy
Other
Public Mass Transit
Smart Grid Systems/Smart Metering
Pollution Reduction & Cleanup
Air & Water Purification Technologies
Air/Water/Sewage/Solid Waste Management & Treatment
Environmental Research & Consulting Services
Green Building Products & Construction Materials, NEC
Green Chemicals
Other Green Products
Pollution Prevention
Remediation Technologies & Services
Recycling & Waste Reduction
Recycled-Content Products
Recycling
Renewable Energy
Biofuels/Biomass
Hydropower Energy
Other
Solar PV Energy
Solar Thermal Energy
Waste-to-Energy
Wind Energy
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The Global Race is On in Cleantech:
CleanEdge Inc. Top Rated Clusters
Technology
Solar/PV Manufacturing
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Wind Turbine Manufacturing
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Smart Grid Networking, Controls
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and Devices
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Plug-in Hybrid Electric vehicles and 
Infrastructure
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Green Building Design Services
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Clusters
Freiburg, Germany
Kansai, Japan
Toledo - Ohio, USA
Singapore
Wuxi, China
Randers, Denmark
Newton - Iowa, USA
Daman, India
Tianjin, China
Spokane Washington, USA
Zug, Switzerland
Rome, Italy
Miami - Florida, USA
Tel Aviv, Israel
Copenhagen, Denmark
London, UK
Amsterdam, Netherlands
St. Louis - Missouri, USA
Stuttgart, Germany
Abu Dhabi, UAE
Trondheim, Norway
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