Transitioning to clean power without workers absorbing the shock

Harvard Kennedy School Professor Gordon Hanson and Harvard Vice Provost for Climate and Sustainability James Stock say an important part of the green energy transition will be mitigating its effects on employment, both in the United States and overseas. Talking about the clean energy transition can conjure up images of commuters using sleek electric trains and electric cars powered by the sun and wind, and of workers with good-paying jobs installing the infrastructure of the future. But the outlook for communities that are economically tied to the fossil fuel economy that will be left behind isn’t quite as sunny.  Stock is director of Harvard's Salata Institute for Climate and Sustainability, which brings together researchers from around the university to collaborate on climate solutions. Hanson is co-director of the Reimagining the Economy Project at the Kennedy School's Malcolm Wiener Center for Social Policy. They say making the green energy transition is urgent and vital, but to do it successfully will mean planning a different sort of transition for almost a million workers in just the American fossil fuel extraction and refining industries alone—not to mention millions of workers further up the fossil fuel ecosystem. Thanks to previous economic shocks like globalization, automation, and the decline of the coal industry, we’ve seen first-hand the devastation that large-scale job loss can wreak on one-industry cities and company towns. Hanson and Stock say harnessing the lessons from those prior transitions can help power a future that’s both green and inclusively prosperous.

Gordon Hanson is the Peter Wertheim Professor in Urban Policy at Harvard Kennedy School. He is also Chair of the Social and Urban Policy Area at HKS, a research associate at the National Bureau of Economic Research, and a member of the Council on Foreign Relations. Hanson received his PhD in economics from MIT in 1992 and his BA in economics from Occidental College in 1986. Prior to joining Harvard in 2020, he held the Pacific Economic Cooperation Chair in International Economic Relations at UC San Diego, where he was founding director of the Center on Global Transformation. In his scholarship, Hanson studies the labor market consequences of globalization. He has published extensively in top economics journals, is widely cited for his research by scholars from across the social sciences and is frequently quoted in major media outlets. Hanson’s current research addresses how the China trade shock has affected US local labor markets, the causes and consequences of international migration, and the origins of regional economic divides.

James H. Stock is Vice Provost for Climate and Sustainability at Harvard University; the Harold Hitchings Burbank Professor of Political Economy, Faculty of Arts and Sciences; and a member of the faculty at the Harvard Kennedy School. His current research includes energy and environmental economics with a focus on fuels and on U.S. climate change policy. He is co-author, with Mark Watson, of a leading undergraduate econometrics textbook. In 2013-2014 he served as Member of President Obama’s Council of Economic Advisers, where his portfolio included macroeconomics and energy and environmental policy. He was Chair of the Harvard Economics Department from 2007-2009. He holds a M.S. in statistics and a Ph.D. in economics from the University of California, Berkeley.

Ralph Ranalli of the HKS Office of Public Affairs and Communications is the host, producer, and editor of HKS PolicyCast. A former journalist, public television producer, and entrepreneur, he holds an AB in Political Science from UCLA and an MS in Journalism from Columbia University.

The co-producer of PolicyCast is Susan Hughes. Design and graphics support is provided by Lydia Rosenberg, Delane Meadows and the OCPA Design Team. Social media promotion and support is provided by Natalie Montaner and the OCPA Digital Team.