U.S. green economy needs plan to hit potential: study

Clean economy jobs grew at a national rate of 9.1 percent from 1998 to 2007 to 770,385, while overall jobs grew 3.7 percent during that time, the study said.

Despite the recession, innovation and competition in the clean economy should continue to rise due to venture capital investments, the cost of fossil fuels, and state and federal policies such as the stimulus bill. But more policies are needed.

"Through (the stimulus bill) the federal government has made an extraordinary investment that will give these and other efforts a significant boost," the report said. "But to realize the clean energy economy's full potential, the nation needs a comprehensive, economy-wide energy plan."

President Barack Obama's stimulus bill included more than $60 billion for clean energy, including $11 billion to modernize the power grid to move energy from renewable energy projects to the cities and $2 billion in grants to develop better batteries for cars. Obama has also pledged to double renewable energy production in three years.

Obama also supports a comprehensive energy plan that would launch a "cap and trade" market on greenhouse gases to encourage investments in renewable energy and cut pollution. An energy bill that would create such a market is working its way through the House of Representatives but its future in the Senate is uncertain.

California led the country in the number of clean economy jobs in 2007 with more than 125,000 workers. Texas had nearly 56,000 such workers that year and Pennsylvania had nearly 39,000.

Venture capitalists invested about $12.6 billion in clean energy across 40 states between 2006 and 2008, the report said.

(Reporting by Timothy Gardner; Editing by Lisa Shumaker)