Economic Impact of the Green Industry
A report released spring of 2011 by researchers at Texas A&M University and the University of Florida put the total economic impact of Pennsylvania’s green industry at $6.8 billion in 2007. The same study put the total national impact of the green industry at $175 billion during that year.
Background of Study
The study was conducted by Drs. Alan Hodges of the University of Florida, Charles Hall of Texas A&M University and Marco Palma also of Texas A&M University and follows a similar study done for the year 2002 that was released in 2005.
Comparison with Other States
Nationally, Pennsylvania’s green industry stacks up well when compared to other states, ranking sixth in the total economic impact, behind California, Florida, Illinois, Texas and Ohio in that order. Figure 1 shows the top ten green industry states.
Regionally, Pennsylvania comes out at the top of the heap in the Northeast region. Pennsylvania’s green industry economic impact of $6.8 billion just edges out New Jersey at $6.7 billion and New York at $6.3 billion. Maryland ranks fourth, coming in at $3.8 billion in economic impact. Figure 2 shows the Northeast regional breakdown.
In the 2002 study (released in 2005) done by the same group of researchers, Pennsylvania’s green industry contributed $5.6 billion in economic impact to the state’s economy.
In 2000, PLNA contracted with a group of researchers at Penn State to do a study following similar methodology to the 2002 and 2007 studies done by the University of Florida and Texas A&M researchers using 1997 data. That analysis showed that Pennsylvania’s green industry had an economic impact of $3.8 billion. So in the decade from 1997 to 2007, Pennsylvania’s green industry grew by about 79%.
Breakdown by Sector in Pennsylvania
The study looked at three major components of the green industry: production and manufacturing (nurseries, greenhouses, equipment manufacturing, etc.), horticultural services (landscape design, installation, maintenance, arboriculture, etc.), and wholesale and retail trade (garden centers, rewholesalers, etc.).
Horticultural services led the way in Pennsylvania with $3.18 billion in economic impact, followed by production and manufacturing at $2.74 billion and retail and wholesale trade at $840 million.