End Goals of Transition

Why These Objectives?

We believe that the transition is likely to impact multiple different areas of life in West Virginia. Most notably, we believe that the green industry transition would produce positive economic growth in the area. Through our research, we have found that renewable energy often creates jobs as well as stimulates local economies. This would hopefully work to decrease levels of unemployment and poverty within rural West Virginia. Also, vocational and educational training would be necessary for the transition to succeed, which could improve job prospects for workers in the region.

Green, renewable energy has a positive impact on the environment, which is an important part of West Virginia. Therefore, we believe this transition could help protect natural resources and preserve the environment in the area by creating better air and water quality. We believe this improved air and water could decrease health issues related to fossil fuel production.

If you would like to learn more about the specifics of these objectives and how we chose them, please continue reading more below!

What are the Economic and Educational Benefits?

What are the Environmental and Health Benefits?

Why Comparative Case Studies?

To understand the result of the transition from fossil fuels to green energy industries in rural areas, it is important to look at similar case studies in different areas. It is important to find case studies in places that have similar social, cultural, political, and economic situations as rural West Virginia. Some areas in the United States have started the transition toward green energy. Both Illinois and New Mexico have made strides toward renewable energy and present themselves as leaders in the country for this transition.^{57 58} Analyzing acts in these states and the impacts they have had on economic growth will help illustrate how a transition could positively impact West Virginia. Since these states are most similar to West Virginia, we believe that these successes are important in understanding how a transition to green energy could impact West Virginia.

Most finished case studies that exist now discussing this transition are from the European Union. In recent years, the European Commission has shifted its focus initiatives toward green and sustainable energy.⁵⁹ Using a European Union member-state case study will likely demonstrate a transition that is close to the end. A political and social analysis will be necessary to determine if these cases are similar enough to compare with rural areas in West Virginia. Other regions in the world are also important to study as they represent the transition as well. However, the most important detail of the case studies will be its impact on sustainable employment and the surrounding community in rural areas. With proper analysis, this literature review could determine a blueprint for sustainable, achievable objectives to work toward in terms of sustainable employment and a transition to green energy industries in rural areas.

In 2017, when Illinois passed the Future Energy Jobs Act, the state committed to being a leader in renewable energy efficiency. The act allocated $750 million dollars for low-income communities as well as protecting 4,200 current jobs from termination.⁶⁰ This act generated economic prosperity in communities in Illinois not only through the protection of current jobs but also the expansion of green energy industries within Illinois. Green energy use created 1.2 billion dollars in economic activity for Illinois by 2019.⁶⁰ It also expanded the renewable energy portfolio within the state. Part of the funding allocated in this bill went to vocational training as well as creating new jobs.⁶⁰

An act in West Virginia similar to this one would likely create similar economic success. While Illinois is not a large producer of energy nationwide, a switch to green energy still generated billions of dollars in economic activity.⁵⁷ Since West Virginia is the sixth-largest energy producer in the United States,⁵² a transition to widespread renewable energy would likely aggregate even more wealth since it would be a competitive industry rather than just an energy conversion. Also, Illinois has lower levels of poverty and a higher workforce participation rate than West Virginia,^{61 62} the creation of a new industry in West Virginia could potentially increase the workforce participation rate and provide incomes to alleviate poverty in rural areas within the state. However, comparisons between Illinois and rural West Virginia are not exact. Illinois has a more liberal government meaning the state faced less political controversy over the transition to green energy than West Virginia potentially would.^{61 63}Illinois also does not have the historical or cultural ties to fossil fuel industries, mainly coal, that West Virginia maintains.⁶⁰ These two factors would play a large role in a green energy transition within West Virginia which were not barriers to Illinois transition.

Read more about the Future Energy Jobs Act in Illinois here!

The Energy Transition Act of New Mexico of 2019 committed to 50% renewable energy within the state by 2030 and 100% renewable energy by 2045. It was designed to protect consumers and residents have reported reductions in electricity costs in 2020.⁵⁸ It allocated 40 million dollars upfront to the communities that are impacted by the transition as well as providing vocational training and severance pay to employees impacted by the transition.⁵⁸ This provides substantial economic relief for impoverished communities. It is currently helping to ease poverty within the state as the government is using this funding to provide services for these communities. It is also creating jobs and reducing energy and electricity costs, which is helping out unemployed persons and families living in poverty.⁵⁸

New Mexico faces similar economic issues as West Virginia. Both states have similar poverty and unemployment levels, as well as similar size workforces and similar median incomes.^{63 64} While New Mexico is not as large of a producer of energy as West Virginia, it still registers in the top ten energy-producing states in the United States.⁶⁴ This means that economic comparisons between West Virginia and New Mexico are fairly accurate because both states have similar economic situations currently. New Mexico has just begun the transition toward green energy but is already experiencing positive indicators of economic growth.⁵⁸ This demonstrates how West Virginia could follow New Mexico’s patterns and slowly begin a transition that will have positive effects on the local economy. However, there are some differences between New Mexico and West Virginia which are necessary to understand when making a comparison of policies between the two. New Mexico has a liberal government with a diverse demographic of workers. West Virginia is more conservative politically and has a more homogenous population.^{63 64} This presents issues when comparing acts. Firstly, a transition to green energy in West Virginia would be more likely to face political opposition. Also, a diverse demographic in New Mexico may be more supportive of a transition because they do not have the same historical or cultural background with fossil fuel industries that West Virginia, especially rural areas within the state, have with the coal industry. Therefore, while West Virginia is likely to experience significant economic growth with a transition, it would not look the same as New Mexico’s does currently.

Read more about the Energy Transition Act of New Mexico here!

Western Finland has fully transitioned to the green energy industry. The areas looked at in the paper are Jakobstad and Kaustinen which have low population density and growth, severe wealth inequality, and experience a higher level of poverty than other areas in Finland.⁶⁵ After transitioning to green energy, namely wind power, and some bioenergy, these areas in Western Finland enjoyed an increase of 6.4% in regional gross domestic product. It also boosted employment numbers in these areas by 3.9%.⁶⁵ This demonstrates that a transition to green energy industries in places similar in composition to West Virginia has increased economic opportunities due to the transition. It also added approximately $5,000 per capita to each resident in the area.⁶⁵ This was in terms of a total household switch from fossil fuel use to renewable energy.

These numbers demonstrated a large economic boost after Western Finland transitioned away from fossil fuels and to green energy. However, West Virginia would be unlikely to experience such extensive growth as Western Finland. These areas in Western Finland have historically been dependant on the foreign import of fossil fuel.⁶⁵ Western Finland does not have natural fossil fuels, whereas West Virginia has historically had an abundance of natural resources and fossil fuels, like coal.^{63 65} Therefore, bringing in green energy industries to Western Finland gave the area a large economic boost because it created an entirely new energy industry in the country that was not present beforehand. West Virginia already has an energy infrastructure that has been contributing to local economies for decades.⁵² Therefore, West Virginia would likely not experience quite the same economic boost as Western Finland. While West Virginia is likely to experience significant economic growth with the transition, it is unlikely that it would be quite as significant as that of Western Finland.

South Africa has begun a transition from coal to green energy. However, the area needs a transition because as coal mining has matured, economic growth in these areas has stagnated, which is similar to West Virginia.^{63 66} This transition is still in its infancy and would not be a full transition, as South Africa still intends on utilizing fossil fuel. However, economists have estimated that this transition will revitalize poor, rural areas within South Africa. It is estimated this transition could create more than 57,000 new direct jobs.⁶⁶

Again, it would be unlikely that West Virginia would face such an economic boost because of some of its dissimilarities with South Africa. However, the most significant part of South Africa’s transition is that these areas have experienced large growth outside of the energy sector.⁶⁶ Other jobs and industries have followed the green energy industries into these areas. South Africa and West Virginia are different regions. However, both places experience poverty and severe wealth inequality. Also, rural areas in South Africa experience poverty at higher rates than urban areas, which is similar to West Virginia.^{63 66} Yet, given differences in the political, social, and cultural aspects, West Virginia would be unlikely to face the same economic success that South Africa will in the transition. South Africa has higher rates of poverty and unemployment than West Virginia.^{63 66} With more people impoverished and out of work in the country, bringing in a new industry is economically revitalizing the area. While West Virginia would also experience this stimulation if it chose to switch to green energy, it would not likely experience quite the same growth as it has lower levels of poverty and unemployment.

Key Take-Away

While we do not have first-hand experience living in rural West Virginia, we have studied the area. Through extensive research on West Virginia now, which can be found on the Facts and Figures of the Current Situation page, we believe that a transition to green energy industries would positively impact the region. We believe that there are many economic, educational, environmental, and health benefits to the transition. We compiled this research to help inform on the transition, what it would look like, and its benefits. We understand that local members of the community may have differing opinions based on lived experiences. However, we encourage local community members to continue exploring this page and doing personal research to make the best energy decision for their communities. Thank you!