The Economics of Just Transition: A Framework for Supporting Fossil Fuel–Dependent Workers and Communities in the United States

Abstract

We develop a Just Transition framework for U.S. workers and communities that are currently dependent on domestic fossil fuel production. Our rough high-end estimate for such a program is a relatively modest $600 million per year. This level of funding would pay for (1) income, retraining, and relocation support for workers facing retrenchments; (2) guaranteeing the pensions for workers in the affected industries; and (3) mounting effective transition programs for what are now fossil fuel–dependent communities.