The transition away from polluting energy sources has serious implications for local communities that are heavily reliant on fossil energy production for jobs, economic growth and government revenue. One option to mitigate the economic disruption is through federal programmes that specifically target these communities to help them build economic resilience against an uncertain future.
Place-based policies designed to support fossil fuel–dependent communities are emerging in the United States and elsewhere. However, there has been little analysis to understand which, if any, existing place-based economic development policies can serve as models in the energy transition.
This report reviews the literature on the effectiveness of three major types of US federally funded, place-based economic development programmes: empowerment zones, opportunity zones and the new market tax credit.