Climate change is the greatest existential threat to humanity and the worst market failure of our time. Economic volatility and environmental degradation are inherent to the fossil industries, whose greenhouse gas emissions caused the climate crisis that impacts us today. Pennsylvania has been uniquely impacted as these extractive industries established a dysfunctional economy driven by boom and bust cycles, which leads to instability and uncertainty for workers and communities across the state. This situation is unsustainable.

How do we transition Pennsylvania to clean energy sources after centuries of dependence upon fossil fuels? What would the necessary transition and resulting economy look like? 

First, let's explore the notions of sustainability and sustainable economics.

What is "sustainability"?

"Enough for everyone forever" is considered the guiding principle of sustainability. The concept demands that we meet the needs of now without sacrificing future generations' quality of life and opportunities. It is both a challenge and a hopeful sentiment of what is possible. It is something enshrined in our constitutional environmental rights as Pennsylvanians and something to fight for.

According to sustainability expert Alan AtKisson: "Sustainability is a concept, a way of thinking, a way of analyzing and understanding" (Sustainability is for Everyone). It includes two important aspects - (1) long-term thinking and (2) systems thinking. Long-term thinking requires careful consideration of data, information, and trends with a specific plan or goal in mind. It requires us to have a vision. This thinking differs significantly from the short-term, profit-driven motivations driving our economy. While the sustainability framework asks, "Will this help us to have enough for everyone forever," our current economic approach instead asks, "Will this maximize profits for shareholders now?" 

Systems thinking acknowledges the connectedness of sustainability. Our society and economic well-being rely upon complex and nuanced systems - planetary ecosystems and the economy - which we tend to collapse and oversimplify. We have learned to separate economies from ecosystems as if our lives do not depend upon both. One provides income, goods, and services. The other includes air, water, and food. Inevitably, the choices made and actions taken in one of these realms impact other parts and functions of the system. Analyzing data and considering trade-offs carefully provides opportunities to mitigate the severity of any potential consequences, like pollution or economic volatility. It ultimately allows us to make more informed choices. 

One final piece of the sustainability puzzle is diversity, which enhances resilience amid shocks and disruptions. For example, when a local economy relies upon a single industry - like a coal-fired power plant - and that industry collapses, so does the community. Consequently, that community is hard-pressed to bounce back after such a shock and economic loss because its workforce, tax base, and way of life were structured around that industry. But when a local economy is diverse - it may include outdoor recreation, hospitality, small contractors, research and development, higher education, etc. - the shock can be absorbed because other employment opportunities, sources of tax revenue, and cultural identity exist. Similarly, a diverse economy can also be more resilient to natural disasters like hurricanes, floods, or wildfires. As the old saying goes, you shouldn't put all your eggs in one basket.

What makes an economy sustainable?

A sustainable economy serves current society's social and economic interests while protecting the natural environment. By striking this balance, future generations will have ample access to economic opportunities. They will not be robbed of health, well-being, and the stable planetary ecosystem necessary for society to function. Sustainability means stability. Stability is vital to sustainability because, without it, economic decisions narrow down to a short-term framework that can lead to reactionary policies and actions. We lose the vision and goals that keep us focused on not just the now but on the future.  In other words, for sustainable economics and long-term thinking and planning to be successful, some level of economic stability must be achieved. 

Because a sustainable economy balances social and economic interests, it values quality of life, work, and health outcomes for communities. This valuation asks questions like "Whose needs are being considered?" and "Whose needs are being ignored?"; and "Which variables are considered "costs" in the decision-making process?". In other words, sustainability aims to reduce the negative externalities (harms) while elevating and enhancing the positive externalities (benefits) created by decisions made. 

Frequently, companies and businesses argue that regulations hurt their bottom line. Yet, it is rare for them to admit when policies and regulations allow them to "externalize" costs, or in other words, place their business's physical and economic burdens onto the workforce and local communities rather than preventing or mitigating those harms in the first place. Such externalities include poor air quality, water pollution, or low wages. Here in Pennsylvania, a clear example of industry externalizing their costs is how oil and gas drillers abandon their wells when they are no longer "productive", leaving the taxpayers on the financial hook to clean up their mess. 

On the other hand, sustainable businesses would enhance quality of life by reducing pollution, improving air quality, and providing quality jobs that offer opportunities for professional growth and higher wages. Ideally, the cycle continues - improving quality of life improves environmental health, attracting businesses and a competitive workforce. Sustainability results in a positive feedback loop, in contrast to what fossil fuels offer, which includes environmental degradation, market volatility, and unstable employment.

How do we move Pennsylvania toward a sustainable economy?

To create a more sustainable economy in Pennsylvania, we must explore how we can generate economic activity, protect the environment, and enhance quality of life while using our natural resources more efficiently. This exploration will lead us to identify products, services, and processes that reduce or limit environmental harm. Of course, this new economy's foundation requires clean energy, clean tech for production processes, and an energy-efficient industry.

This shift in strategy will be challenging in Pennsylvania because fossil fuels are entrenched in our economy and culture. But change is possible. Communities are beginning to re-envision a future that is less reliant on dirty energy and more focused on quality of life. Momentum is building. Communities are eager for a path forward. Decision-makers and policy experts need to develop that path.

While the environmental movement relies heavily upon regulation, it alone will not transition us to a sustainable economy. We must also create and utilize economic policies that incentivize and establish preferences for clean energy, clean tech, energy efficiency, and sustainable businesses (e.g., "green collar jobs").

State policy is a great place to focus our efforts because increasing sustainability on a local and regional level is foundational to success. Building local capacity for sustainable business and industry increases support for local-serving economic activities (i.e., businesses that do not export their goods or services). This support is vital because: 

• High quality of life attracts and retains businesses and workers, 
• Local services support industry clusters, local services - like education and health care - play critical roles in communities and are considered public goods, 
• And providing services locally is more efficient and cost-effective, as compared to importing them. (Defining the Green Economy)

Thus, to move Pennsylvania towards a more sustainable economy, it will take the creation and utilization of standards, regulations, incentives, technical assistance, and marketing programs combined with supportive economic policies that can include options like local purchasing requirements, local hiring requirements, labor standards, and provisions that allow agencies to clawback funds when standards are not met.

As we outline in our latest report, "Economic Policy IS Environmental Policy: Prioritizing Environmental Progress in Pennsylvania's Department of Community and Economic Development", there are concrete steps like these that our state decision-makers should take to move towards a more sustainable economy. It begins by reforming key state agencies, like the DCED so that the development and deployment of renewable energy and cleantech manufacturing are prioritized utilizing the financial tools already at our disposal. This agency, in particular, has the potential to leverage its private sector influence to effectively facilitate Pennsylvania's transition to a sustainable economy fueled by renewable energy. When reshaping our economy, the government has a great deal of influence. In Pennsylvania, that influence should be redirected towards renewables and cleantech to support a stable and sustainable economy for all.

What would a more sustainable future look like for Pennsylvania? 

If we take a look at the long-term and systems thinking that creates sustainability and apply that to Pennsylvania, a sustainable economy should include:

• Cleantech manufacturing revitalizes economically distressed communities;
• R&D, biotech, and life sciences industries expanding economic opportunities in rural regions;
• Facilities fueled by renewable energy, which was developed and installed by local contractors;
• Energy assessment and energy efficiency efforts reduce home heating and cooling costs;
• State and local governments attracting and obtaining funding to support low-income residents' efforts to weatherize their homes and
• Stronger and more resilient supply chains that are regionally based and reduce energy and material waste.

This vision can become a reality. Making it happen requires understanding the complex and nuanced systems that create the framework for our economy. It also demands that our decision-makers be visionaries willing to lead.

We cannot wait.

In the past, our inability to address the crises of our economic and environmental systems has led to an endless cycle of temporary "recoveries" in various industries and the greater economy, leaving workers and families to struggle in their wake. While we must recognize that economics is a critical decision-making factor when planning or responding to a crisis, it should not be the only factor. Historically, the economic argument has been to allow the market to dictate which solutions and mitigations of the crisis are viable and appropriate. Waiting for the market has wasted precious time and distracted decision-makers, ultimately delaying progress. At the same time, the window of opportunity and the number of options to address the climate crisis narrows. We show deference to market imperatives at our planetary peril. 

It is time that we re-envision our economy in a way that prioritizes economic stability and community health. We must reduce economic volatility and environmental pollution and create an alternative vision for our future. We should not rely on what harms us to provide our livelihoods, goods, and services. Sustainability offers another way, and PennFuture is committed to helping realize that future.