Daniel Raimi – Just Transition Initiative

Summary

This report examines major federal policies related to environmental remediation and infrastructure spending, highlighting evidence of the effectiveness of these programs in terms of costs, job creation, and positive externalities. The author identifies programs that could support the communities and workers who are negatively affected by an energy transition. The author measures the cost-effectiveness of federal spending on programs to clean up “Superfund” sites, cap orphaned oil and gas wells, improve water infrastructure, construct and maintain highways, and install broadband capacity.

One section of the paper covers environmental remediation, including the closure of coal mines and nuclear or oil and gas sites. The paper notes the positive spillover effects, such as increased property values, of many environmental remediation programs. A second section covers infrastructure programs that support construction and related industries. The author notes that economists disagree on whether federal spending on infrastructure, for example highway construction, creates more economic activity or simply redistributes it.

Both environmental remediation and infrastructure programs can contribute to a just transition. However, the author warns of potential environmental justice concerns that can result from federal spending in these areas, including post-remediation gentrification and worsening air pollution in minority communities due to transportation infrastructure.

Summary

This report analyzes the U.S. federal programs that could help fossil fuel–producing regions transition to a low-carbon future. It divides these programs into those that target local or regional economies driven by natural resource development (including timber and agriculture as well as fossil fuels) and those with broader geographic or economic scope. The authors suggest that the former, place-based development approaches can be especially effective.

The report examines three regional economic approaches that might be successful in a just transition context: offering capacity-building programs and technical assistance, financially supporting public and community organizations, and financially supporting private firms that may otherwise struggle to access funding. The authors also indicate that such efforts would require coordination among federal, state, and local officials and that substantial scaling up would be required for them to have a meaningful impact.

The report identifies programs that target natural resource–dependent communities and highlights a handful of initiatives that could aid just transitions efforts. For example, the Economic Development Integration program coordinates multiple economic development initiatives across agencies while making deliverables more efficient, and the U.S. Department of Agriculture’s rural development programs provide technical and financial support for public and private rural institutions. An extensive appendix in the report details many federal policies in full.