4. Conclusion
In this article I have presented a method to estimate employment multipliers for industries that are not explicitly identified in inputoutput tables, termed “synthetic industries.” Specifically, I have estimated employment multipliers for clean energy industries including wind, solar, bioenergy, geothermal, hydropower, building weatherization, mass transit & freight rail, industrial EE, and Smart Grid. These clean energy industries are not identified as such in national accounts or in input-output tables, yet the various materials and services of which these EERE industries are composed do already exist in the tables. By creating “synthetic industries” we enable policy evaluation of green versus brown industries, or more precisely, we are able to estimate the number of jobs created by public or private spending for clean energy in comparison to spending the same amount on oil, gas, or coal production. In order to estimate these employment multipliers, I used data on the cost structure of each clean energy industry to generate a vector of demand for the output of that industry. Using survey data, databases, and other sources of data collected by various agencies and organizations, I assigned weights to the various industries in the I-O tables that represent the component costs of the clean energy industries. I also recreated the vectors from Garrett-Peltier (2011) and Pollin et al. (2015) in order to provide a comparison with the new estimates provided in this article and to update these earlier findings with newer data.