The Policy Greenhouse

The Precedent

When it comes to making drastic changes to industry in America to preserve the environment, there are often concerns about preserving the economy while making environmental progress. A great example of this is the initial resistance that many American lawmakers had to the implementation of the Montreal Protocol. The Montreal Protocol was an agreement that drastically limited the allowed emissions of Ozone Depleting Substances (ODSs). One ODS that this applied to was CFCs (Chlorofluorocarbons).  CFCs are not only used in aerosols such as sunscreen or bug spray, but they are also used as a refrigerant for refrigerators as well as being used in the production of refrigerators and other technologies. Because of the frequent use of ODSs in manufacturing, many lawmakers thought that the drastic reduction in the emissions of ODSs that the agreement called for was too extreme to be feasible, and so they did not want America to join the agreement because they thought the economy would suffer because of it. In addition to this, they also argued that the replacements for CFCs and other ODSs that could be used instead for manufacturing and other things were not viable, as industries needed more time to develop these solutions without sacrificing quality or safety. However, those making these points did not consider how the transition to non-ODSs (that all nations in the world had to make as per this agreement) provided an opportunity for the US. Once an alternative to CFCs was found (HFCs) the new companies using HFCs (Hydrofluorocarbons) experienced a lot of growth, which was also shared by the job market. All of these new technologies needed to be installed as well as manufactured, so almost instantaneously the decision that was supposed to induce economic decay contributed to economic growth. 

What this means for Renewable Energy

Keeping in mind the economic growth that the US’s manufacturing industry experienced when pushed to find an alternative to ODSs, it is easy to see how more drastic legislation regarding the implementation of renewable energy in public spaces as well as residential spaces might lead to more economic growth rather than decay (as many people in the oil and gas industry might have you believe). Currently, the growth of the renewable energy industry has led to undeniable growth in the American economy. The renewable energy sector is projected to increase the American gdp by up to 4%. Furthermore, Solar power provides twice the jobs per unit of generation compared to traditional fossil fuels. Reduced reliance on fossil fuels enhances energy security, mitigating price volatility. Lower operational costs for renewable energy systems and declining technology prices translate to long-term savings for businesses and consumers. Furthermore, the growth of renewable energy industries fosters innovation and positions the U.S. at the forefront of clean technology, attracting investments and boosting economic competitiveness on a global scale. As a whole, while moving away from fossil fuels can be a scary thing as it carries a degree of uncertainty, the American economy has conquered uncertainty before, and it certainly will again.

Sources:

https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2016/IRENA_Measuring-the-Economics_2016.pdf, https://www.business.com/articles/the-impact-of-green-energy-on-the-economy/#, https://www.sciencediplomacy.org/article/2020/learning-success-lessons-in-science-and-diplomacy-montreal-protocol, https://www.unep.org/ozonaction/who-we-are/about-montreal-protocol, Chlorofluorocarbons (CFCs) – Global Monitoring LaboratoryGlobal Monitoring Laboratory (.gov)https://gml.noaa.gov › hats › publictn › elkins › cfcs