Why Measuring the Clean Energy Economy Is a Game of Catch-Up
Solar and wind are changing the US economy faster than methods can be devised to capture their impact.
Workers install a solar panel system on the roof of a home in Palmetto Bay, Florida.
Photographer: Joe Raedle/Getty ImagesLast month, the US Bureau of Economic Analysis published its annual revision to US national accounts — key economic figures such as gross domestic product, national income and household savings rates. The upshot: The US economy is bigger than previously thought. The revised numbers show the economy grew faster than the bureau had estimated in 2017, 2018 and 2019, and shrank less in 2020.
One of the updates is particularly relevant to clean energy and climate. It is more than a data revision. It is a story about how established systems react (or don’t) to rapidly evolving signals of significant economic change. And it is a story of two sharp-eyed economists and one thoughtful institution making an effort to reflect reality at a noisy time.