The Center for American Progress has released a "Green Recovery" report on how to create green jobs and a low-carbon economy. The report's starting premise is hard to fault: The problems in the U.S. economy over the past year (rapid rise in oil prices, collapse of the housing market) have helped increase unemployment and difficulties for businesses.

There is a path out of these economic problems, according to Green Recovery. That route could strengthen the country's economy and position it for sustainable prosperity. The plan comes with a $100 billion price tag over two years, but the spending seems like it would jump-start the economy better than this summer's stimulus plan (also a $100 billion plan). The money would be spent in six areas:

1. Retrofitting buildings to improve energy efficiency
2. Expanding mass transit and freight rail
3. Constructing "smart" electrical grid transmission systems
4. Wind power
5. Solar power
6. Next-generation biofuels

The primary difference between the Center for American Progress proposal and the spending plans the U.S. Congress is considering to help the eonomy is where the money will be spent. Most plans on the table focus on infrastructure improvements, such as roads. The green recovery plan suggests a renewal of construction and manufacturing work — two areas in which unemployment is particularly high. Stabilizing energy prices by investing in renewable energy and biofuels is just gravy.

Making energy-efficiency renovations the first step was a good move. The technology exists and is available to make most buildings more energy efficient. Unlike next-generation biofuels, little research is necessary to implement the first step. It's an action that can have an immediate effect on the economy, creating work for many people associated with the construction industry.

The real value of the green recovery approach is its practicality. We know that investment in sustainability is necessary, but the costs of making it seem huge. The U.S. government will take further action to improve the current economic situation, so why not take steps that address American energy independence, jobs and environmental issues, all at the same time?

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Green Recovery was written by Robert Pollin, Heidi Garrett-Peltier, James Heintz and Helen Scharber, members of the Department of Economics and Political Economy Research Instritute at the University of Massachusetts-Amherst. The report is available as a PDF from the Center for American Progress website.

Image — Center for American Progress