1. It is Not Easy Being (or Defining) Green Presentation by Gary Crossley to the IAWP 97 th Educational Conference Monday, June 28, 2010 2Work www.LovetoWork.org [email_address] Phone -- 843/452-4121
51. Affect of the New Green Economy on O*NET Occupations Occupation Information Occupation Type New & Emerging Enhanced Skill Increased Demand Specific --Job Titles --Tasks --Tools & Technology --Detailed Work Activities ALL NEW & GREEN ADDITIONALGREEN STAYS THE SAME Knowledge, Skills, and Abilities --Importance and level ratings on current O*NET KSAs ALL NEW & GREEN CHANGED STAYS THE SAME New Knowledge, Skills, or Abilities --KSAs not currently identified within the O*NET Content Model POTENTIALLY POTENTIALLY
We are working toward providing three types of information: How many green jobs are there and how this changes over time Where these jobs are found by industry, occupation and geography What these jobs pay. Beginning in FY2010, the BLS budget includes $7.8 Million for BLS to gather new data on green jobs.
BLS needs a definition that Is objective This means the definition is not based on a particular policy position, or , to the extent possible, on judgment calls Empirically measurable: i.e., we can actually use it collect and tabulate data We must ask respondents for information they actually have Respondents must be able to understand and accurately answer survey questions. Uses standard classifications so the results will be comparable to other data from BLS and other sources. This means using the NAICS and SOC
In developing our definition, we did a lot of background work. We read a lot of literature to get ourselves informed. We looked at what others were doing regarding definition and measurement approaches, including the work of our friends at O*NET We also looked at international work, and were especially influenced by Statistics Canada’s environmental survey, and Eurostat’s environmental statistics handbook. We consulted with some stakeholders, including federal agencies, industry associations, and our state partners. To facilitate BLS and States learning from one another, the WIC set up the Green Jobs Study Group. The Study Group report looks at definitions, existing surveys and studies, lessons learned, and action plan for the States.
At its broadest level, BLS defines green jobs ….
We have identified seven categories of green economic activity. These help put some boundaries around what is “green”. Each of these is elaborated on in the Federal Register Notice, and we asked for comment on them.
We have adopted a two-pronged approach to measurement: the output approach and the process approach. The Graphic illustrates the concept. Think of this as what happens in any business establishment.
The output approach is similar in many ways to the usual way BLS tabulates employment by industry, since establishments are classified by industry on the basis of the products or services they produce, that is, their outputs. NAICS occasionally also takes the production process into account, such as in the electric utilities industry. The process approach, however, is different from our usual way of looking at employment. And there is no taxonomy of production processes.
Economic activity results in the production and sale of goods and services. Green economic activity results in the production of green goods and services. So what goods and services are green? Identifying these goods and services is one of the difficult challenges we have faced. The result of our effort is a definition of 4 types of green goods and services: Direct Indirect – the most complex one Specialized inputs Distribution of green goods, defined as a green service IMPORTANT: The definition of green goods and services applies only in the output measurement approach. The process approach applies to all industries.
Produced specifically for an environmental purpose. Test question: would this product or service be produced if it did not have an environmental purpose?
Indirect is the most complicated of the four types of green goods and services. The key is the environmental impact in comparison with other goods used for the same purpose.
Indirect is the most complicated of the four types of green goods and services. The key is the environmental impact in comparison with other goods used for the same purpose.
We need an objective way to determine whether the good has a better impact on the environment than other goods use for the same purpose. We plan to use standards , where available, to make this call.
Specialized inputs is the third category. This is an attempt to capture the supply chain, where it is identifiable and specific.
Distribution is the fourth type of green good or service. We have included services that specialize in distribution of green goods. This is a topic we specifically asked for comments on.
We have developed a definition that is based on economic activity and its impact on the environment. This means we have not included job aspects that are sometimes mentioned in the context of green jobs. Part of the reason for excluding these things is to reduce complexity. The other is for objectivity. We did not think it appropriate for BLS to make judgments about, for example, how high a wage is high enough to include: Wages and benefits(although we will collect wage data by occupation) Union membership Career ladders or advancement Safety and health conditions of the work We believe our definition is broad enough and will let us present data in enough detail that users can adjust it for their needs. For example, they can analyze it along with other data to understand career advancement.
Some other limitations or things we need to work on: “Net impact” – some refer to this is the life cycle of a good or service. An example is solar panels. We have included this as a clearly identifiable green good. They are produced specifically for the purpose of generating energy from renewable sources, one of our “green” economic activities. But producing solar panels involves use of toxic chemicals, a negative environmental impact. Does this offset their positive environmental impact? There are probably hundreds or even thousands of other examples. BLS does not have the expertise to make these judgments.
Let me turn now to our measurement plans. As mentioned earlier, we have two measurement activities planned: one for the output approach, one for the process approach. In the output approach, we have identified industries where green goods and services are classified – the list was published for comment along with the Federal Register Notice. We will survey a sample of establishments in these industries. We will also get their occupational staffing pattern, using the regular OES collection process.
For data collection, we will survey a sample of establishments in these industries to find out if the establishment does produce the good or service, and if yes, what share of their revenue is from these outputs. We will use the share of revenue as a proxy for the share of employment – a topic we asked for comment on. This approach is based on two things. Statistics Canada attempted a similar survey and asked for share of employment, which was unsuccessful – high item non-response – but found they could collect share of revenue. Also, our field testing suggests that share of employment would be difficult to collect. Share of revenue will only be needed where the establishment produces both green and non-green outputs. We don’t know how often this is the case, versus establishments that produce only one type of output or only green outputs.
Here’s an illustration of what we expect to publish from this survey. We have enough funding for a fairly large national sample – around 120,000 units. We expect to publish data for States at the supersector level.
In addition to the industry data, we will collect employment and wages by occupation from the establishments included in the industry survey sample. The sample design will overlap with our regular OES survey sample, to minimize additional collection effort and respondent burden.
Change gears – let’s look at the Process approach. This is a different concept than the output approach, and is also different from our usual data collection activities. We know, however, that there are green jobs in businesses that do not produce green goods and services. Businesses may use green production processes to produce any type of good or service. That is, production processes that reduce pollution, conserve natural resources, etc. Two general categories: Producing green good or service for use within the establishment (not for sale to customers) Using production methods that have a positive impact on the environment or natural resources conservations
In the process approach, we will develop a special employer survey to measure the number of jobs related to these green production processes.
We published the definition in the Federal Register, which you have as a handout. We received 144 comments (slide says 143) – a little out of date. Some of you commented – thanks!
Here’s a snapshot of where the comments came from. General topics most frequently addressed: Definition - 44 Forestry - 22 Reuse - 18 Recycling - 16 Transportation -8 Construction 6 NAICS-3 Organic -3
Regarding the use of revenue: economic theory suggests this method is satisfactory if three conditions are met: Wages in the green and non-green jobs are the same Profits (relative to labor) earned from the two types of goods are the same Proportions of non-labor to labor inputs are the same for green and non-green goods
What happens next? We need to finalize the definition. This means studying the comments and making decisions on whether we will make any changes in response to them. We are also continuing to refine the goods and services, and industry list, and identify standards that might be used to distinguish “green” from other goods or services. We are getting help on this from some other federal agencies (EPA, Transportation, for example). Our first collection will be the output survey.
Process survey is on a somewhat later track, but we have begun work on it. We also are working on some new career information products, with wind energy as the first topic.