Regional Advantage

The East Bay has several characteristics and resources that give the region an advantage in the race to grow the green economy. Perhaps the region's greatest advantage is its head start; Figure 1 shows that there are more green jobs in the East Bay than in any other California region other than Los Angeles.

Figure 1. Green Jobs by California Region, 2007
The major cities of the East Bay each have their own distinctive niche in the green economy. Oakland has historically focused on recycling. Berkeley, due to its proximity to UC Berkeley and Lawrence Berkley National Lab, is a natural home for start-ups. Emeryville is attracting biotech and biofuels companies. And Richmond has turned its focus to solar power and developing innovative job training programs for its workforce.

In general, the East Bay's progressive politics and history of green consumerism provide a natural market for green products, while local research institutions help foster innovation in new technologies. Additionally, the region has recently experienced an influx of funding for renewable energy research and for green job training programs. This page provides more detailed background and statistics on the regional advantage of the East Bay.

Demographics

Figure 2. Real per capita income in the East Bay and California.
With nearly 7% of California's population concentrated into two counties, the East Bay is a major regional market as well as a driver of local economic growth. The total population of the East Bay (Alameda and Contra Costa Counties) is about 2.5 million people. As shown by Figure 2, the per capita real income in the East Bay has been increasingly higher than the California average over the past several decades. The unemployment rate has also remained consistently below the statewide average over the past two decades. (back to the top)

Green Businesses

Figure 3. Green Establishments in the East Bay by Sector, 2007

The East Bay already has a significant number of green establishments that were employing nearly 25,000 people as of 2007. Figure 3 shows the region's green establishments broken down by sector. Environmental services and recycling are the dominant sectors of the green economy currently in the East Bay and both have experienced significant growth over the past 20 years. In terms of jobs, the largest growth sectors have been green building and environmental services. (back to the top)

Economic Innovation

Figure 4. Green Start-ups in the East Bay, 1990-2006
The East Bay continues to be a steady source of innovation in the green economy. As shown in Figure 4, the East Bay has generated an average of 80 startups per year in the green economy since 1990. In total, more than 1300 green start-ups were launched in the East Bay between 1990 and 2006, compared to 820 launched in nearby Silicon Valley in the same time period.

Patent data also indicate that the East Bay is a center for green innovation. From 2000-2008, the East Bay generated 53 patents in cleantech, nearly 14% of the cleantech patents for all of California in that time period! (back to the top)

Research Connections

Our survey of East Bay green businesses found that over half of respondents interact with local universities on a regular basis. The University of California at Berkeley is one of the largest employers in the region and an important driver in innovation. Examples of particular research programs at the University of California that engage with the business community include the Center for Energy & Environmental Innovation (Haas Business School), the Renewable and Appropriate Energy Laboratory (Energy and Resources Group), the Center for Community Innovation (Department of City and Regional Planning), and the Energy Biosciences Institute.

In addition, the Lawrence Berkeley National Lab employs 4,000 people and has active research programs in several sectors related to the green economy, including biofuels, solar photovoltaics, energy efficient buildings, batteries, fuel cells, and light-emitting diodes. For example, the Joint Bioenergy Institute is a partnership between Lawrence Berkeley National Lab, UC Berkeley, Sandia National Laboratories, UC Davis, and Lawrence Livermore National Laboratory aimed at developing the next generation of biofuels. It has been estimated that Lawrence Berkeley National Lab contributes $700 million per year to the Bay Area's local economy through direct, indirect, and induced spending. (back to the top)

Human Resources

Figure 5. Educational attainment, East Bay and US, age 25+, 2000
Source: US Census Bureau, 1990 & 2000 Censuses of Population
The East Bay has a well-educated workforce. As of 2000, over 35% of East Bay residents had achieved a bachelor's degree or higher. Figure 5 shows the break-down of educational attainment of the East Bay population age 25 and up; the East Bay compares favorably with national averages.

Figure 6. UC Berkeley graduates by major, 2007 and 2008
Source: UC Berkeley Career Center, 2007 & 2008 Senior Surveys
Part of the reason for this well-educated workforce is the large proportion of graduates of UC Berkeley that remain in the Bay Area after graduation. UC Berkeley has an undergraduate population of 25,000 students. Surveys of recent graduates from 2007-2008 generated about 2000 responses each year. Figure 6 shows the breakdown of survey respondents by category of major. In each category, between 50-70% of those surveyed were working in the Bay Area, with business graduates having the highest retention rate and architecture & design graduates the lowest. (back to the top)

Geographic Resources & Infrastructure

In addition to its obvious attractiveness, the East Bay's sunny climate also means that the region has a good solar energy resource. The California Solar Initiative maps California's solar resource, and provides detailed information about state incentives to promote solar photovoltaics.

The East Bay benefits from a strong network of transportation infrastructure, including two major ports and a major international airport. The Port of Oakland, including both the maritime port and Oakland International Airport, is the fourth largest container terminal in the nation. More than 99% of the goods flowing into and out of northern California pass through the Port of Oakland. There is also a smaller port in Richmond, which is the top port on the San Francisco Bay for liquid bulk and automobile parts. (back to the top)

Market for Green Products

Our survey of green businesses in the East Bay indicates that access to the local market is one of the top three factors influencing businesses to locate in the region. The San Francisco Bay Area has a rich history of environmentalism. Accordingly, the people of the Bay Area demonstrate a heightened preference for 'green' and eco-friendly products, as compared to the rest of the state and the country.

Recently, researchers at UCLA calculated an 'environmentalism factor' for each zip code in California based on rates of Green Party registration as well as election results for ballot measures related to environmental issues. They found a statistically significant correspondance between the environmentalism factor and the prevalence of the eco-friendly Toyota Prius and LEED-certified buildings. Their findings, as demonstrated in Figure 7, show that the East Bay features a high environmentalism factor.

Figure 7. Environmentalism Factor by Zip Code

Source: Kahn, Matthew, and Vaughn, Ryan. 2008. Green Market Geography: The Spatial Clustering of Hybrid Vehicle and LEED Registered Buildings

Another illustration of the demand for green products and services can be found in voting patterns. In November 2008, California voters approved Proposition 1A, a state ballot measure authorizing the construction of a high-speed rail train, by a margin of 53 to 47. As demonstrated in Figure 8, the East Bay voted for Prop 1A at an even higher rate.

Figure 8. California Proposition 1A, November 2008, Yes Votes


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