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Evergreen Economies:Green Local Procurement Policy as a Sustainable Economic Driver Living Economy Salon Laurie Kaye Nijaki, Ph.D. University of Southern California; Price School of Public PolicyUniversity of Michigan; Erb Institute for Global Sustainable Enterprise
Today’s Talk• 1) Introduction to the Green Economy• 2) Defining Differences in Opportunities• 3) Green Economy Policies: A National Perspective• 4) Towards a Green Economy Action Plan: A Focus on Procurement
Traditional Development Theory and Defining Progress: Economic Growth and the Urban Environmental Problem Traditional focus on growth (expanded GDP etc.) as central goal. Environmental degradation is an externality of the pursuit of growth. Rhetoric: Economy versus Environment. Fuels conflicts between stakeholders around development choices, and the pursuit of quality of life issues. If we must choose between the economy and environment, can we ever win? (Source: Campbell, S. JAPA, 1995)
Moving Beyond Growth: Sustainable Development Theory Sustainability/Sustainable Development: Economy, Environment, and Equity. Moving Beyond Growth. (Higgens, 1996; Roberts,2004 et.al.) Rhetoric: Environment and Economy New Strategic Framing around development. (Snow and Benford, 2004) New benefits through new institutions and new partnerships between historically adversarial groups. Key Question:How can we establish economic development in communities and also provide effective solutions to environmental degradation? How can we best shape development in a manner that is preservative of equity, environmental, and economic goals? Sustainability as a “fuzzy concept;” difficulty in measuring and institutionalizing the rhetoric. (Gunder, 2007 et.al)
Why Study the Green Economy?: Green Jobs as a Sustainable Solution? Operationalize/concretize “sustainability” through concept of green jobs as a new form of economic growth created by new markets and made possible through technological advance. Similarly fueled by the rise of corporate social responsibility, and new niche, consumer-driven markets. (Dahlsrud, 2006, Younger and Tiley, 2006, Hardjona and Klein, 2003) Green Jobs: “Activities which produce goods and services to measure, prevent, limit, minimize or correct environmental damage to water, air and soil, as well as problems related to waste, noise and ecosystems.” (OECD,2000) Green jobs are economic opportunities in environmental preservation/remediation. The green economy may be a new institutional nexus for dealing with development decisions in communities and in providing economic goods to communities while achieving environmental benefits.
Why Study the Green Economy?: Trends in Term “Green Jobs”In order to understand and build opportunities in this framework,we need to define and systematically examine the “green economy.”
Defining Green Differently • "Green collared jobs, as we define them are well-paid, career track jobs that contribute directly to preserving or enhancing environmental quality. Apollo Like traditional blue collared jobs, green collar jobs range from low-skilled, Alliance entry-level positions to high-skill, higher-paid jobs, and include opportunities for advancement in both skills and wages.” • “Cleantech jobs..are a direct result of the development of development, production, and/or deployment of technologies, that harness renewableCleanedge materials and energy sources, reduce the use of natural resources by using them more efficiently and productive, and cut or eliminate pollution and toxic waste.” • “Any activity that generates electricity using renewable or nuclear fuels, agriculture jobs, supplying corn or soy for transportation fuel, manufacturing jobs producing goods used in renewable power generation,US Council equipment dealers and wholesalers specializing in renewable energy, orof Mayors energy efficiency products, construction and installation of energy and pollution management system, government administration of environmental programs, and supporting jobs in the engineering, legal, and consulting fields”.Brookings • “Defined as the sector of the economy that produces goods and servicesInstitution with an environmental benefit.”
An Array of Green Actors• Green Producers:Job opportunities directly in the manufacturing and production of green goods and servicesEx: Solar panel manufacturing, installation of Product that provides Green Supply DFP filters on heavy duty vehicles. environmental Chain• Green Consumers: RemediationJob opportunities in companies that include “environmental sustainability” as part of Everyday Green Business Sustainable Life their operating principals. Practices Green Cycle of Products Theoretically, they are the customer’s of the green producers. FIrmEX: Environmental/sustainability consulting, green restaurant owners and workers
Dimensions of the Green EconomySource: Nijaki et. al. Employment Development Department Green Jobs Survey, 2010
Green Jobs or Green Washing?•What jobs are “green jobs”?•Who determines the standards?•And, how do we know it’s all reliable?How do we ensure we are getting greenjobs and not green washing?
Part 2Defining Differences in Opportunities in the Green Economy
Are there Differences in Green Economic Opportunities?• A) Differences in aggregate number of green Jobs.• B) Differences in “type of green employment.”
A) Differences in AggregateNumber of green Jobs.
Are there differences in green employment by urban type? Boston Sacramento St. Louis Seattle Portland San Jose Santa Ana Washington Wichita Columbus Tampa New York Albuquerque Oklahoma Austin Mesa San Francisco Tucson Charlotte Cleveland Oakland Tulsa Philadelphia San Antonio Nashville Los Angeles Omaha San Diego Louisville Minneapolis Long Beach Baltimore Memphis Fresno Raleigh Pittsburg ChicagoVirginia Beach Indianapolis Fortworth Atlanta Miami Las Vegas El Paso Jacksonville Houston Dallas Milwaukee Detroit Kansas City Denver
Differences in Green Jobs by Urban Typology 2.1. UNSUSTAINBLE 3. GREEN 4. LAGGING ENVIRONMENTAL 5. GREEN GIANTS UNDERDOGS BOUTIQUES LEVIATHANS ENTREPRENUERS Smaller Smaller Smaller Populated Populated populated populated populated metropolitan metropolitan metropolitan metropolitan metropolitan areas. areas. areas. areas. areas. Low median Low median High median Low median High median income. income. income. income. income. Trailing Leading Leading Trailing Leading sustainability sustainability sustainability sustainability Sustainability programming. programming programming. programming. programming.
How Does Green Employment Vary by Urban Type? Total Green Employment Green Jobs 46919.9375 50000 42734.3636 45000 40000 35000 30000 25000 17763.3636 20000 12302.5 15000 7015.2857 10000 5000 0 1 2 3 4 5 Small Small Small Big Big Poor Poor Rich Poor Rich Trailing Leading Leading Trailing Leading
Green Jobs Per Capita Green Employment Per Capita0.025 0.021 0.02 0.0130.015 0.01 0.01 0.01 0.0080.005 0 1 2 3 4 5 Small Small Small Big Big Poor Poor Rich Poor Rich Trailing Leading Leading Trailing Leading
Green Economy Clusters Green Building and • NACIS 24611 Industrial Building Construction Construction • SOC 11-2051.12 Wastewater engineersTransportation and Alternative • NAICS 4842 Specialized Freight Trucking Fuel Vehicles • SOC 17-2141.01 Fuel Cell Engineers Waste, Waste • NAICS 562112 Hazardous Waste Collection Management, Recycling • SOC 51-9199.01 Recycling and Reclamation Workers Environmental • NAICS 541620 Environmental Consulting Services Compliance, Sustainability • SOC 13-1199.05 Sustainability SpecialistsPlanning, Pollution PreventionEnergy Generation, Renewable • NAICS 541711 Research and Development in Biotechnology Energy, Energy Storage • SOC 17-2199.11 Solar Energy System Engineers See Appendix for Complete Codes
The “Type” of Green Economy Differs Green Economy Clusters Per Capita Employment by MSA 0.16 0.14 0.12 0.1 0.08 San Francisco 0.06 Boston 0.04 LA 0.02 0 Green Building Transportation Waste Environmental Compliance Energy
Boston-Cambridge-Quincy MSA 9% 2% 11% 53% 25% Green Building and Construction Cluster Transportation and Alternative Fuel Vehicle Cluster Waste, Waste Management, Recycling Cluster Environmental Compliance, Sustainablilty Planning, and Pollution Prevention Cluster Energy Generation, Renewable Energy, Energy Storage Cluster
San Francisco-Oakland-Freemont MSA 33% 47% 11% 1% 8% Green Building and Construction Cluster Transportation and Alternative Fuel Vehicle Cluster Waste, Waste Management, Recycling Cluster Environmental Compliance, Sustainablilty Planning, and Pollution Prevention Cluster Energy Generation, Renewable Energy, Energy Storage Cluster
Los Angeles-Long Beach-Santa Ana MSA 7% 2% 10% 53% 28% Green Building and Construction Cluster Transportation and Alternative Fuel Vehicle Cluster Waste, Waste Management, Recycling Cluster Environmental Compliance, Sustainablilty Planning, and Pollution Prevention Cluster Energy Generation, Renewable Energy, Energy Storage Cluster
Part 3Green Economy Policies: A National Perspective
How Are Cities Taking About Green Jobs?Measure Impact of “Discourse”: Frequency of References of “green jobs” on each city’s website. Average Frequency Green Jobs References by City Type 247.8125 250 200 150 100 42.4 39.1818 50 1.2857 6.6 0 1 2 3 4 5 Small Small Small Big Big Poor Poor Rich Poor Rich Trailing Leading Leading Trailing Leading
Type 1: Unsustainable Underdogs Trailing Small Low Median Sustainability Population Income Indicators• Little focus on green jobs. No references in city website.• Exception: OmahaGreen Jobs per Capita .008Total Green Jobs 7,015Average # WebsiteReferences 1.2Green Jobs/Sustainability Program 426Green Jobs/Environmental Organization 194
Type 2: Struggling Startups Small Leading Low Median Population Sustainability Income Programs• Specific green jobs programs, but little impact.• Specific websites focused on the green economy. (i.e. City of Tucson)• Focus on workforce development programs-Green Jobs Corps. (i.e. City of Fresno, City of Miami)• Some Focus on Clean Technology. Green Jobs San Antonio Clean Tech, City of Louisville financing programs/revolving loan fund) (i.e. City of Per Capita .010 Total Green Jobs 12,303 Average # Website References 42.4 Green Jobs/Sustainability Program 461 Green Jobs/Environmental 230 Organization
Leading Small High Median Sustainability Population Income Programs• Well developed programs around the green economy. Green Jobs as a stated goal. (i.e. Minneapolis “green economy” indicator on sustainability plan)• “clean technology” focus. (i.e. City of San Jose, City of Austin)Green Jobs per Capita .021Total Green Jobs 17,763Average # Website References 39.2Green Jobs/Sustainability Program 611Green Jobs/Environmental 197Organization
Type 4: Lagging Leviathans Trailing Large Low Median Sustainability Population Income Programs• Green jobs focus as inconsistent and diverse.• Some focus on workforce development strategies.• Green jobs focus tends to be “project specific.” (i.e. City of Mesa Solar Energy Park, City of Long Beach green goods movement focus)Green Jobs per Capita .010Total Green Jobs 45,530Average # Website References 6.6Green Jobs/Sustainability Program 1418Green Jobs/Environment Organization 199
Type 5: Green Giants Leading Large High Median Sustainability Population Income Programs• Concerted and consistent approaches towards the green economy• “clean technology” focused initiatives (i.e. City of Chicago Clean Tech Jobs Center, City of New York Green Tech and Manufacturing Initiative)• Workforce development programs. (i.e. “green collared jobs corps” City of Las Vegas, City of Oakland City of New York jobs former felons)Green Jobs per Capita .014Total Green Jobs 46,920Average # Website References 247.8Green Jobs/Sustainability Program 1577Green Jobs/Environmental Organization 244
Who’s Generating Green Jobs: Green Leaders and Brown LaggardsUrban Type Type Characteristics Per Capita Green Average # “Green Jobs Jobs” Website ReferencesUnsustainable •Small Population •Low Median Income .008 1.2Underdogs •Trailing sustainabilityStruggling Startups •Small Population •LowMedian Income .010 42.4 •Leading SustainabilityGreen Boutiques •Small Population •High Median Income .021 39.2 •Leading SustainabilityLagging Leviathans •Large Population •Low Median Income .010 6.6 •Trailing SustainabilityGreen Giants •Large Population •High Median Income .014 247.8 •Leading Sustainability
A Package of Potential Programs • Green Purchasing • Green Business Certification • Clean Tech Corridors/Land Use Approaches • Business Incubation Strategies/university partnerships • Workforce development for resulting opportunities
Part 4Towards a Green Economy Action Plan: A Focus on Procurement
Traditional Procurement• Choosing the Lowest Cost Bid: the contractor who produces the lowest cost service or product estimate in response to a request for proposal (RFP).• Key Goal: “Obtain the most appropriate and highest quality good and service possible for the least cost.”• Benefits: – Transparency in choosing bids – Regularity in evaluating bids – Simplicity in decision-making process – Economic efficiency/lowest cost
What is the Role of Government Procurement?Source: Nijaki, L. K. and Worrel, G. “Sustainable Procurement at the Local Government Level” International Journal of Public Sector Management, Forthcoming
Types of Procurement: Going Beyond Lowest Cost Estimates• Purchasing for Economic Development• Purchasing for Economic Equity• Purchasing to Achieve Environmental Benefits
Purchasing for Economic Development• “Buy local” efforts• Efforts seek to develop local markets through government procurement• i.e. “Buy America” provisions in ARRA
Purchasing for Social Equity• Minority/Woman Owned Business Requirements• Using procurement to create targeted business opportunities.• i.e. City of Los Angeles MBE/WBE requirements
Purchasing for Environmental Benefits• Environmentally Preferable Procurement• Defined as buying “products or services that have a lesser or reduced effect on human health and the environment when compared with competing products or services.” e.g. higher recycled content, energy efficient machines, less toxic products.• i.e. City of Santa Monica
Same City, Different TracksAn Example: City of San Jose:• Environmental: EPP policy: Procurement of services and products that reduce toxicity, conserve natural resources, material and energy, maximize recyclability and recycled content.• Equity: Up to a 5 percent bid preference for minority-owned and woman-owned businesses.• Economic: Local Preference Policy gives up to 5 percent bid preference for local business enterprises.
Sustainable Procurement: Three “E”s for Green Jobs?
Procurement for Sustainable Local Development1. Examinecurrent public procurement processes.2. Definewhether or not any of those products could be manufactured within their locale.3. Analyzewhether growth is appropriate for the community in terms of industrial mix and workforce capabilities. Define occupations and industries.4. Determineother economic incentives and industry incubation strategies.5. Implementprocurement strategies, considering phase- in priorities and measurement of results. Three major approaches: bureaucratic assistance, bid preferences, and blanket policies.
Bureaucratic Assistance• Offering case management within procurement process for firms representative of sustainability values.• Advantages: – Strategic targeting of businesses – Engage “start-ups”, opportunities to bolster innovation – Long term personal and customized support• Disadvantages: – Long-term vision – Time and resource intensive – Potential for favoritism• Sample Policies: King County, Washington; Portland and Multnomah County, Oregon
Blanket Policies• Widespread policy incorporating sustainability goals within procurement decisions.• Advantages: – Sends strong message. – Ensures outcome and rigorous evaluation of programmatic goals.• Disadvantages: – May be politically infeasible. – Inflexible in implementation – Threshold levels may de-incentivize attainment of higher environmental goals.• Sample Policies: Woodbury County, Iowa; San Francisco, California.
Bid Preferences• Integration of sustainability goals within the ranking of prospective firms.• Advantages: – Target particular groups for benefits – Flexibility in meeting multiple outcomes – Layer procurement policies on top of existing system• Disadvantages: – Favoritism and due to ambiguity – Difficulties in being able to structure preferences to achieve most sustainable end• Sample Policies: Cal Trans, Marion County, Oregon
Key Challenges• Political Feasibility and Ensuring Against Favoritism/Transparency• Training Staff• Evaluating Products and Developing Implementation Plans• Coordination Between Disparate Departments• Workforce Development and Economic Development—Equity Considerations
Creating the “tools”Based upon the results of this research, there is needed to develop a “green economy” growthtool for local green jobs growth. There is a need to create an effective green economy databasefor local communities that can consist of the following toolsets that collectively can indicateavenues of opportunities. Such a tool should be available online.For Businesses:-Searchable database for city/county procurement requests for proposals.-Searchable database for government incentives related to “green.”-Searchable database for events relevant to the “sustainable business community.”For Governments:-Database of “local” and “nonlocal” businesses offering green products.-Ability for businesses to “pitch” and/or showcase “green” products.-Ability to locate “local businesses” on a map in order to showcase local impacts.-Database for city/county procurement requests that can be done collaboratively across cityboundaries. Such a database can provide resources for cities looking to partner with oneanother, as well as for regional government agencies seeking collaboration.
For Job-Seekers:-Ability for “green businesses” to post help-wanted adds.This will provide constituents interested in the greeneconomy with needed resources.For Consumers:-Searchable database for products that they may be ableto buy along with government procurement efforts inorder to expand market opportunities and tofoster public-private partnerships leading to theproliferation of sustainable goods.
Policy Analysis: • Climate Action Plans • Sustainability Plans • Alternative Fuels Policies/Transpotration Policies • Water Policies • Goods Movement Policies • Water Efficiency/Re-Use Policies • Energy/Energy efficiency/Solar Plans/RPS Green Econony Plan: Workforce Development Strategy Land-Use/Geographically Specific Strategies Financing Mechanisms Business Incubation Government ProcurementEconomic DevelopmentAnalysis: Stakeholder Analysis:• Occcupational Analysis • Green Collared Jobs• Industry Analysis Alliances • Green Business Associations
Some Key Resources for Green Jobs Workforce Development Research:• BLS Green Communities of Practice: • https://greenjobs.workforce3one.org/• State of California Employment Development Department: • http://www.labormarketinfo.edd.ca.gov• Onet Green Occupational Information: • http://www.onetcenter.org/green.html