The U.S. Green Building Council (USGBC) recently commissioned the “Green Building Economic Impact Study” prepared by Booz Allen Hamilton. The study takes a deep dive into the various contributions the green construction industry has made to the U.S. economy. The economic impacts are overwhelmingly positive, but the projections point to a brighter future for the green construction space.
The study analyzed green and LEED construction at national and state levels for their direct, indirect, and induced contributions to: GDP, labor earnings, and employment.1 The study uses the best available data, tracked annually, to make economic impact projections through 2018. For the analyses, the total value of a green building was used, because “both green and non-green professions” benefit from employment opportunities.1
Over the past several years, the growth of green construction has outpaced that of general construction.1 In 2015, green construction is projected to directly contribute: $61B to GDP, 797,000 jobs, and $54B in labor earnings to the national economy.1 By 2018, green construction nationally is projected to support more than 3.3M jobs through direct, indirect, and induced contributions1, which is “more than one-third of the entire U.S. construction sector”2. David Erne, a Senior Associate at Booz Allen Hamilton, remarked that “this industry is certainly on the rise, and aggressive growth in the green building sector is anticipated over the next four years”.2 The economic benefits of green construction are clear, but the benefits extend far beyond that of the national economy.
Aside from supporting real jobs with real income, there are additional benefits that extend beyond the confines of key economic indicators. According to the study, the national green construction market is projected “to generate $4.8B in savings”1 from 2015 to 2018, through energy, water, trash, and maintenance labor cost savings. Over the same time period, these energy benefits are equivalent to avoiding the emissions of 3.4M passenger cars. 1 While these metrics are more easily quantifiable, additional benefits associated with work well-being are also realized. This study did not explore these additional benefits, but it is clear that the benefits of green construction practices are far reaching.
Take a look at the infographic below for additional summary points.
1- U.S. Green Building Council. (2015). Green Building Economic Impact Study. McLean, VA: Booz Allen Hamilton.
2- U.S. Green Building Council. (2015). New Study Finds Green Construction is Major U.S. Economic Driver [Press Release]. Retrieved from http://www.marketwatch.com/story/new-study-finds-green-construction-is-major-us-economic-driver-2015-09-16
