The next few years will be consequential both for the state of New Jersey and our country. We are living through a time of increasing dynamism and are on the precipice of extreme technological breakthroughs that have the potential to significantly improve almost all aspects of life as we know it. At the same time, between proposed drastic federal policy changes, international upheaval, and a sense of uncertainty that has gripped the nation, optimism for the
future seems to be at an all-time low. To break the fears and concerns we must move forward in a smart way that captures the economic opportunities and empowers residents and workers, all while striving to make life better for everyone.
A major component that we must address in order to move forward is around how we will power the future. Energy needs are predicted to grow substantially and our electric grid and energy production facilities are not currently sufficient to handle the projected increases. We are at a crossroads. Doing nothing means energy rates rise, technological advancement is stifled, and, in general, everyone is worse off. Another option is trying to expand capacity by using 20 th century technologies when we are dealing with 21 st century problems, which may help in the short term, but does not fundamentally solve the challenge. The final choice, which is proposed in the forthcoming pages, is to embrace the challenge and meet it with innovative solutions that will generate clean energy with no co-pollutants, create good paying jobs and economic benefits to our state, and modernize our grid, all while mitigating extreme weather events and improving air quality and public health.
New Jersey has the opportunity to build upon past success and help lead the way in producing new clean energy, like wind and solar, which will help us meet growing energy demand. The State can electrify our transportation sector, which will improve air quality and public health, while also providing the opportunity for grid storage solutions that improve reliability and ensure energy is deployed when and where it is needed. We can develop a workforce to fill the high paying, often union jobs that come with a modern clean energy economy, which, if done right, will provide opportunity to communities and regions that have historically been left behind. And, New Jersey can invest in grid modernization and efficiency measures that will prepare us for future demands by using innovative technologies that make sense from both a fiscal and reliability angle.
By tackling these four components of the clean energy economy – building clean energy projects, electrifying transportation, workforce development, and grid modernization – New Jersey can be a leader, not only in clean energy, but also in employing technologies that enable the future and mitigate the worst impacts of climate change. Now is the time to look forward and think big, so that everyone in the state can take advantage of the benefits. At this crossroad, we hope that you will join Jersey Renews and our partner organizations in embracing the promise and potential of a Jersey-made, clean energy driven future.
Authors: Joshua R. Castigliego, Sagal Alisalad, Sachin Peddada, Liz Stanton, PhD
June 2022
Researcher Joshua Castigliego, Assistant Researchers Sagal Alisalad and Sachin Peddada, and Senior Economist Liz Stanton, PhD prepared a report on the economic impacts associated with a clean energy transition in New Jersey that aims to achieve the State’s climate and energy goals in the coming decades. AEC staff find that adding in-state renewables and storage, and electrifying transportation and buildings creates additional job opportunities, while also bolstering the state’s economy. From 2025 to 2050, AEC estimates that New Jersey’s clean energy transition will result in almost 300,000 more “job-years” (an average of about 11,000 jobs per year) than would be created without it. AEC also identifies a variety of additional benefits of a clean energy transition, including several benefits that are conditional on the design and implementation of the transition.
In a companion publication to this report—Barriers and Opportunities for Green Jobs in New Jersey—AEC discusses equity, diversity and inclusion in New Jersey’s clean energy sector along with barriers that impede equitable representation in New Jersey’s green jobs.
Media Coverage – NJBiz – June 9, 2022
Media Coverage – NJ Spotlight News – June 8, 2022
In 2018, the United Nations Intergovernmental Panel on Climate Change raised the alarm when they released a report stating that we have only 12 years before the effects of climate change are irreversible. The complete overhaul of the world’s fossil-fuel-based economy is a massive undertaking that will require concerted effort and continued coordination from governments and corporations both large and small. Since the federal government has chosen climate denialism in lieu of climate action, states need to take the lead.
For New Jersey, that means tackling serious problems with our transportation system. Nearly 50% of New Jersey’s greenhouse gas emissions come from the transportation sector along with a significant amount of air pollution like particulate matter and nitrogen oxide, a precursor to ozone. With over 9 million people, New Jersey is the most densely populated state in the country. We have more than 6 million registered vehicles, and New Jersey suffers from some of the worst regional air pollution.
While New Jersey has made improvements to reduce air pollution, we still have some of the worst air quality in the country, with urban centers in the state suffering the worst impacts. The Camden/Philadelphia area is ranked among the top 25 worst metropolitan areas for particle pollution. The Newark/New York and Camden/Philadelphia metropolitan areas ranked 10th and 21st among U.S. cities for worst ozone pollution, respectively. Urban and low-income communities bear the brunt of transportation pollution, with bus and freight depots more likely to be located near or within those communities.
The results can be seen in the massive health disparities between residents who live near high-polluting transit sites and those who do not. Black children are admitted to the emergency room for asthma twice as much as other populations, and black communities experience infant mortality, low birth weight, and lack of access to healthcare more frequently than other populations.
Race, class, and income level also determine the types of transportation an individual chooses to use or can afford. People in low-income or urban communities use more public transit or rely on community members for carpools and rideshares. Those in wealthier communities can afford to purchase a vehicle and generate more
vehicle miles traveled. Access and affordability of transportation directly affect an individual’s opportunities for employment, access to health care, child care, education, and the ability to find healthy foods for themselves and their families. These divides consistently fall along racial as well as income lines and require a robust and more equitable approach to addressing New Jersey’s transportation needs and climate mitigation policies.
To further improve equity within New Jersey, electrification efforts must be supported by service expansion of public and paratransit to ensure all communities and workers have access to affordable public transit, as well as accessible transit to ensure that people of all abilities are able to use it. However, the scope of this paper will look exclusively at the ways in which electrification of transportation can improve equity.
Developing an electrified transit system can help close the health and wealth gap by reducing air pollution and mitigating climate change by equitably distributing electrification throughout the state. The 2019 draft of New Jersey’s Energy Master Plan prioritizes the electrification of transportation. State investment in electric charging infrastructure and mass transit can push New Jersey to the front of the pack on air quality and greenhouse gas emissions reductions. Renewed support for mass transit built to make transportation more accessible and affordable for all New Jerseyans, especially our most marginalized communities, will leap our state ahead of the rest of the nation. By investing in the electric vehicle industry, still relatively new on the East Coast, New Jersey could be the benefactor of thousands of good, family-sustaining jobs that will be necessary to support an electrified transit system.