Economic Contributions of the Green Industry in the United States in 20181

Abstract

AbstractThe economic contributions of the green industry in the United States were estimated for 2018 using information on industry employment and wages, and economic multipliers from a U.S. IMPLAN economic model. Direct industry output for all sectors was estimated at $159.57 billion (B), and total output contributions, including indirect and induced regional economic multiplier effects of export sales, were $348.08 B. The total value added contribution to the Gross Domestic Product (GDP) was $190.98 B, including labor income contributions of $121.55 B, other property income contributions of $16.01 B and business taxes paid to local, state and federal governments of $25.84 B. The industry had direct employment of 1,599,662 fulltime and part-time individuals, and total employment contributions of 2,315,357 jobs in the broader economy. The largest individual industry sectors in terms of employment and GDP contributions were landscaping and horticultural services (1,460,669 jobs, $221.89 B), greenhouse, nursery and floriculture production (217,574 jobs, $28.69 B), and lawn and garden equipment and supplies stores (292,614 jobs, $43.80 B). The top ten states in terms of employment contributions were California (264,913 jobs), Florida (203,482), Texas (161,151), Ohio (90,406), Pennsylvania (90,075), New York (90,266), Illinois (87,595), North Carolina (78,766), Michigan (77,719), and Georgia (66,527). Since 2013, green industry contributions in 2018 increased by 16.2% for employment and 17.3% for GDP in inflation-adjusted terms. Growth in the industry was highest for wholesale and retail trade, while production and manufacturing declined. Although the green industry has grown slowly in recent years, it remains an important contributor to national, state and local economies.Index words: Sales, industry output, employment, value added, Gross Domestic Product, production, manufacturing, landscaping services, wholesale, retail, lawn and garden product line.