The BlueGreen Alliance (BGA) was founded on the belief that the future of working people and the health of the environment are inextricably linked. We reject the false choice that good-paying jobs and economic opportunities are at odds with protecting our environment. In fact, we know that building and operating a clean economy can create and maintain good jobs if we make the right investments and do it the right way. We can quantify those jobs and learn about what they might look like with research.

While some of our jobs studies use other methods, most of BGA’s jobs studies calculate estimates of job creation for a policy or investment using input-output (I-O) modeling, a well-established economic analysis tool that simulates the flow of funds through linked industries and sectors of the economy. These models are commonly used to evaluate and compare public policies (see this foundational article on jobs benefits of climate policy for details). The inputs we model are typically a change in policy that results in an investment that drives multiple benefits which yield a distinct set of returns, including increased jobs, income, industry output, public revenues, and gross domestic product (GDP).

As a result of changed spending patterns or investments, I-O models calculate the direct effects of a policy that stimulates on-site construction of a project, but also the indirect effects, such as the manufacture of supply chain components that are installed, and the induced effects like increased spending from workers at local restaurants and other businesses. Because of the complexity of the real economy, the interpretation of outputs from these models is most useful for comparing different policy options, or scenarios with all else being equal, rather than predictions of actual jobs created.

Note on “job-years”: sometimes outputs of jobs in our studies are reported in job-years, a unit which represents one full-time job lasting one year. If a worker holds the same job for two years, this is two job-years. This definition is typically included in report methodology. While confusing, this measurement incorporates the time dimension and provides cumulative job creation, simplifying seasonal employment, part-time, and temporary workers. For example, a worker employed constructing a solar farm may work two job-years on that project and then—when the solar farm is completed—move to a new project to work another two job-years and so on. While the individual has stable employment, their employment is not tied to one specific project for that project’s lifetime but will span several projects throughout their career. This makes it straightforward to compare outputs from different policy scenarios. See this factcheck.org piece for more discussion.

At BGA, we often work with qualified economists to run these models. These experts have the knowledge and skill to formulate the inputs, obtain the data required, run the model, and interpret the outputs. BGA staff work closely with economists to help translate policies and investments into the inputs and calibrate the model assumptions. We also convene partners and allies, leveraging their expertise and on-the-ground experience to inform the inputs and assumptions and scope the policies we want to model. This shared analysis gives us a deeper understanding of the context in which the policies operate as we then quantify the benefits.

The employment output from an I-O model relies on employment multipliers, which show how changes in one industry impact other industries that are directly or indirectly linked. Two sectors of the economy that are of particular interest to BGA are construction and durable manufacturing because many of our partners represent workers in these sectors. These sectors have relatively high employment multipliers, which means redirecting spending from other parts of the economy towards construction and manufacturing creates jobs (see these Economic Policy Institute (EPI) Employment Multipliers for details).

One illustrative example—our 2023 Plugging the Leaks 2.0 report—looked at the economic impacts of proposed from the U.S. Environmental Protection Agency (EPA) to reduce waste, pollution, and greenhouse gas emissions in the oil and natural gas sector. This report was the only one to focus on the jobs and worker health impacts of a methane rule and was frequently cited by the Biden administration in policymaking discussions. Methane leaks harm the economy and the environment by jeopardizing the health of workers and communities, wasting resources, and worsening climate change. The study found that jobs displaced by reductions in oil and gas extraction due to reduced leakage are more than offset by the jobs created to produce, install, and operate leak detection equipment. Additionally, the work required to reduce leaks is more labor-intensive than oil and gas extraction (the multiplier is higher), so shifting money from extraction towards leak detection produces more jobs per million dollars. Note that this study focused on direct and indirect jobs but excluded induced jobs created mostly in service industries.

Some types of investments create more bang for the buck than others and these impacts can be incorporated into the models. Failing infrastructure creates a drag on the economy and infrastructure investments reduce this drag (see our 2017 Making the Grade report for details). Energy efficiency investments save money and those cost savings get redirected elsewhere into the economy. The American Council for an Energy Efficiency Economy (ACEEE) developed a custom I-O model called the Dynamic Energy Efficiency Policy Evaluation Routine (DEEPER) that models these energy and cost savings. We used that model in our 2011 Gearing Up report modeling job creation from better fuel economy standards. The DEEPER model informed development of Energy Innovation’s Energy Policy Simulator, a model for climate and energy policy focused on carbon emissions reductions and public benefits. Policy interventions can impact jobs outputs as well; prevailing wage requirements can ensure good, family-sustaining wages for workers. Domestic content requirements and incentives can result in more manufacturing jobs being created and maintained here in the United States to make products that may have otherwise been imported.

BGA is focused on ensuring that jobs created and maintained by policies are good, union jobs and that they are accessible to workers. and they don’t just benefit workers, but also support the well-being of communities and democracy. This is particularly important as legacy fossil fuel industries tend to be more unionized and support high-paying, family- and community-sustaining jobs, whereas . Policies in the Inflation Reduction Act (discussed below) were specifically designed to address this discrepancy, and were working to do so before being attacked by the Trump administration. Our Making the Grade 2.0 report—which on the Bipartisan Infrastructure Law (BIL)—outlined how to incorporate these policies into infrastructure investments. Nearly all the policy ideas in Making the Grade were included in BIL is some form.

BGA also has a focus on equity and healthy and safe communities, and efforts towards this goal also have economic impacts. Ensuring worker health and safety can result in cost savings; for example, heat standards can strengthen the economy, increase productivity, and avoid preventable costs. A 2018 report from the Kellogg Foundation The Business Case for Racial Equity found that eliminating racial disparities could increase U.S. GDP by $8 trillion by 2050.

I-O models can tell us details about what estimated jobs will look like: their sector, associated workforce statistics like demographic data, educational attainment, and other attributes that tend to be associated with those jobs. This allows us to assess and compare job quality and equity of the estimated outputs. This information can be used to advocate for policies we think will do the best job creating the benefits we want to see.

The Inflation Reduction Act utilized a set of key labor and equity standards—such as prevailing wage, registered apprenticeship programs, and others—that help ensure the creation of good, union jobs that build pathways into the middle class and move us closer to creating a cleaner, more prosperous, and equitable future. BGA, along with the National Skills Coalition, commissioned the Political Economy Research Institute (PERI) at the University of Massachusetts Amherst to produce a report on Employment Impacts of New U.S. Clean Energy, Manufacturing, and Infrastructure Laws (2023).

The BGA-authored Executive Summary of the discusses job quality across BIL, CHIPS, and the Inflation Reduction Act, covering wages, health insurance, retirement plans, and union membership associated with jobs expected to be created by these bills. The report found that while wages were expected to be higher than U.S. workforce averages, union membership, health care, and retirement were expected to be lower, indicating a need for additional policies and strategies to ensure these investments maximize real benefits on the ground. The report also discusses job accessibility, finding that a large share of jobs created by the investments are estimated to be available to workers without a bachelor’s degree. Labor standards for construction in the Inflation Reduction Act were beginning to improve jobs in the clean energy sector—union representation across the energy sector was increasing under the law and union jobs accounted for one of every three net new jobs across the energy sector in 2024.

Similarly, the Economic Policy Institute’s (2021) found that without policy efforts to enhance job quality and equitable access to good jobs, the auto sector could see an employment decline in a transition to electric vehicles. However, strategic investments in manufacturing and job quality could increase good jobs in the auto sector, with Black workers having the most to gain.

Jobs modeling can also help quantify trade-offs and show costs and benefits of policies. A study from Dartmouth and Princeton in 2023 estimated impacts of the Inflation Reduction Act on the wind and solar industries found that the Inflation Reduction Act’s 45x manufacturing tax credit—which mostly survived the One Big Beautiful Bill Act (OBBBA)—makes domestically produced solar PV modules 30% less expensive than imported modules. Note that this study did not use I-O modeling.

Likewise, our latest research in our Bait and Switch report (2026)—which also did not use I-O modeling—found that, largely due to OBBBA, 223 manufacturing, clean energy, and industrial projects are already facing cancellations and delays, representing at least $82.8 billion in capital investment, which could cost 111,765 jobs. Additionally, more than 3,034 manufacturing, clean energy, and industrial sites face tax restrictions due to OBBBA, putting at risk $695.2 billion in capital investment and 1,184,996 jobs.

Quantifying and understanding the economic impacts of a policy or investment helps us to identify and advocate for the most effective ways to create and maintain good jobs in the clean economy. Policies that ensure that jobs created are good, union jobs and that communities benefit from investments—such as labor standards, domestic content requirements, and community benefits agreements—are crucial to successful implementation. These robust jobs studies have helped us achieve wins that result in real benefits to working people.

BlueGreen Alliance Jobs Studies and Findings

About This Series

The BlueGreen Alliance operates in a unique space in the movement for good jobs in a clean economy and our coalition has a wealth of knowledge, expertise, and experience in the areas in which we work. BGA research is developed by staff across the organization and equips partners and allies with robust data and analysis to support our shared work towards a clean, prosperous, and equitable economy. Our dedicated Research Department leverages an array of expertise to generate robust, evidence-supported research and data products and to inform data-driven analysis and policy recommendations.

As we celebrate our 20th anniversary in 2026, this four-part blog series reflects on 20 years of research at the BlueGreen Alliance. 

Part 1: Manufacturing
Part 2: Automotive Sector
Part 3: Impactful Jobs Studies
Part 4: Tracking the Clean Economy