Estimating the Job Creation Potential Through the Massachusetts Climate Adaptation Superfund Proposal

The Massachusetts State Legislature is now considering a Climate Adaptation Superfund bill. This measure would require major fossil fuel companies to finance, over 25 years, multiple climate adaptation projects in the state. This study examines the prospects for creating new jobs throughout the Massachusetts economy via implementing this bill. Specifically, we estimate the number of jobs that are likely to be generated when these adaptation measures are undertaken in Massachusetts.

We generate our job creation estimates on the basis of three key assumptions: These three assumptions concern: 1) the overall spending level for the Superfund project; 2) the allocation of a given level of Superfund spending among the various adaptation measures; and 3) our estimates as to the job creation levels resulting from implementing any given adaptation activity. We focus the discussion on what we term our Reference Case scenario. This Reference Case is based on a set of midrange figures for the three assumptions. Our most basic result generated by our Reference Case scenario is that if the full set of adaptation measures described in the Superfund bill are implemented at an annual budget of $1 billion per year, we estimate these activities will generate roughly 7,600 jobs per year in Massachusetts. The 7,600 jobs per year that we estimate will be generated by the Superfund project in our Reference Case is roughly 45 percent greater than if the same $1 billion were spent in Massachusetts within the state’s largest fossil fuel-based industrial sector, which is natural gas distribution. Overall, we conclude that the Superfund investments in climate adaptation can become a strong engine for expanding job opportunities throughout Massachusetts. This is in addition to achieving its fundamental purpose, which is, as stated in the bill itself, “to avoid, moderate, repair or adapt to negative impacts of climate change or to assist communities, households, and businesses in preparing for future climate-change-driven disruptions.”