Navigating The Rural Green Economy’s Challenges and Solutions

As we envision a green economy for the future, what are the concerns of rural residents?

Rural America is a complex and varied geography with many diverse types of communities. Like any urban or suburban community, a wide diversity of lived experiences, cultures, identities, and opinions exists. To lump all of rural America together in one bucket would be like saying that Miami and Minneapolis are the same. 

That said, there are some essential lessons for rural green economy challenges coming out of rural communities across America — especially places capitalizing on a natural resource base through drilling and mining, corporate agriculture, timber, and paper. In fact, many rural regions have been valued for what can be grown, extracted, or managed with an overtly exploitative model (how much can we get from this for the lowest cost). Over the years, these extractive economies have experienced booms and busts caused by many factors like corporate consolidations, innovations, trade policies, and globalization.

Not only has a singular focus on growth and jobs as the primary measures of success proven insufficient — and sometimes harmful — at improving rural economic and social outcomes over the long run, but too many rural communities have paid the price for these extractive low-cost strategies in the form of environmental justice issues like polluted water, damaged ecosystems, and long-term health concerns.

A worry with a green economy centered on energy storage through batteries is a potential return of extractive approaches to land and water resources. One example is the need to mine lithium from the hills or cover good agricultural land with solar panels, leaving the rural location of green energy production no better off than before and potentially worse off if history repeats. Many rural people feel that the green economy is not “for them” because they are not included in the discussion of new energy sources, see their way of life diminishing in this transition, and have yet to see the economic benefits of the rural clean-energy transition.

What would a truly collaborative green economy look like in rural areas?

It’s time to do economic development differently, in a way that includes rural people and places at the decision table—and in the profits. The good news is that alternatives already exist, particularly with a “wealth-creation” method, in which communities build on local assets they already have. At Aspen CSG, we call this asset-based, wealth-building, and more encompassing approach “Doing Development Differently.”

A foundational element of this work is understanding the importance of place as both the central way people can come together and find common ground and confront the long history of intersectional discrimination based on race, place, and class — a crucial part of building an inclusive economy. To center marginalized rural communities, we must intentionally work on identifying and dismantling historical and ongoing discriminatory practices that disadvantage rural people and places.

What methods help rural residents BE included in economic development discussions?

Developing and supporting locally owned businesses in rural communities and Native nations is critical to increasing rural prosperity and equity. Unfortunately, the typical strategy is to attract/recruit private enterprises that are owned and operated outside the area and are focused on extracting/managing whatever natural assets in the region, treating rural people, resources, and communities as disposable assets. 

The full diversity of rural community interest holders must work together to establish healthy relationships and be in regular, trusting, and transparent exchange so that the community can plan, develop, and maximize its assets equitably and sustainably, and so that outside business owners make decisions that produce benefits and reduce damage for both the rural community and themselves.

One sector where we see positive change in this direction is outdoor recreation. Encouraged by trends that see more people vacationing and relocating to amenity-rich areas, many rural communities and Native nations are turning to outdoor recreation as a primary economic strategy. 

As new rural outdoor recreation economies take root, we can meet this moment by improving how we plan for infrastructure and ownership models to better support rural families, businesses, and workers, create more sustainable and equitable economic systems, and improve local health and wellbeing.

We convened 27 rural economic and community development practitioners to inform Mapping a New Terrain: A Call to Action. Through this process, we identified five principles to improve health and economic outcomes for rural communities and Native nations and actionable steps to achieve these principles. 

  • Advance local, equitable, sustainable ownership and control of outdoor recreation assets.
  • Build resilient infrastructure that supports a flourishing community, including diverse outdoor recreation businesses and workers.
  • Work regionally to build trust, achieve scale, and meet shared outdoor recreation challenges and opportunities.
  • Respect the local landscape, people, and culture in the design and implementation of all development efforts.
  • Design for equitable access to and participation in outdoor recreation activities.

Outdoor recreation development done equitably builds a sustainable economic strategy based on local and regional natural assets like forests, riverways, seashores, mountains, and more, and connects those assets into value chains that grow local business ownership and high-quality jobs.

Frequently Asked Questions About the Rural Green Economy

What is the rural green economy?

The rural green economy refers to economic systems in rural areas that prioritize sustainability, renewable energy, and conservation while supporting local livelihoods. It includes sectors like regenerative agriculture, clean energy production, sustainable forestry, and eco-tourism. A strong rural green economy creates jobs, protects natural resources, and ensures communities benefit from the clean-energy transition.

What are the main challenges facing the rural green economy?

Key rural green economy challenges include exclusion of community voice, limited infrastructure, lack of investment capital, workforce shortages, and inequitable ownership of energy or natural resource assets. Many rural regions also face policy and technical barriers that make it harder for communities to benefit from green transitions. Addressing these issues requires collaboration, local capacity-building, and inclusive governance that centers rural voices in decision-making.

How can rural communities overcome green economy challenges?

Rural communities can overcome green economy challenges by fostering local ownership, investing in workforce training, and building partnerships between governments, businesses, and community organizations. Supporting inclusive financing, strengthening broadband access, and aligning policies with rural needs help ensure that green growth is both equitable and sustainable. Rural Development Hubs are critical organizations doing the work of overcoming green economy challenges. A Rural Development Hub is a regionally rooted organization that brings a region together for action, doing what needs to be done to fill gaps and repair systems.

This topic in action:

Janice Ikeda, an Asian woman, headshot

“Regenerative tourism means shifting from an extractive relationship to investment and reciprocity. It starts with an awareness of belonging, and from that sense of belonging to that place and community grows what we call kuleana (responsibility, seen as a privilege). It means the aloha spirit, the way of welcoming a person to feel a sense of belonging that translates into a deep sense of responsibility to that place.

The joke is, you know you are family if you are invited to a home for dinner, and they let you wash dishes. One indicator of regenerative tourism is the willingness to move from the dining table to washing dishes. The willingness to reframe and question everything we’ve been told is knowledge, success, wealth. It is a low bar to just focus on sustainability. In the past, Hawai’i wasn’t just sustainable, it was abundant.”

Janice Ikeda, Vibrant Hawai’i

“In Munising, we are the gateway community to Pictured Rocks National Lakeshore. Our county, Alger County, has about nine thousand residents and is large and sprawling. But our area gets around a million visitors every summer to do mountain biking and things like that. This influx happened all within the last ten years.

Our residents are around fifty percent low to moderate income, and many of our jobs end up being seasonal, so they’re lower paying, and most don’t have benefits, contributing to significant population decline. Some of that’s certainly due to housing issues — many homes get turned into short-term rentals. Housing costs have skyrocketed, so people can’t afford it on low-paying seasonal jobs.”

Johanna Bogater, We The People Michigan

Aspen Institute Community Strategies Group
Latest From Aspen CSG
Blog
Green landscape with icons and designs over it
Building Capacity in Rural & Indigenous Communities

Insights and learnings from rural practitioners on how organizational capacity and technical assistance can be carefully and intentionally strengthened to grow economies, health, and livelihoods for each and every person in their regions.

Blog
Volunteer places a 'Vote Here' sign outside a rural community center before polls open.
A Reminder To Reporters: If You’ve Seen One Rural Place … You’ve Seen One Rural Place

By shaping accurate narratives, we can drive fair and just investments and policies that honor the people and places at the heart of rural and Indigenous communities.

Tool
Measuring community capacity building book cover
Measuring Community Capacity Building Workbook

This is a workbook focuses on improving the ability of individuals, organizations, businesses, and government in their community to come together, learn, make well-reasoned decisions about the community’s present and future, and work together to carry out those decisions.

Blog
Ten Books for Rethinking Rural and Indigenous Development

Stories shape how we understand people and places. This list highlights narratives and research on the systemic forces affecting rural and Indigenous communities.

Blog
How Rural Development Hubs Can Strengthen Rural Health Transformation Program Implementation

Rural Development Hub leaders say new funding like RHTP works best when regions interpret it against existing priorities, coordinate it through existing partnerships, and adapt it to local context — rather than treating it as a distinct program.

Blog
Ten Podcasts Focused on Rural Community and Economic Development

Check out our roundup of podcasts highlighting important issues about and to rural communities and Native nations.