Wednesday, February 9, 2011

Green Jobs - Economic Boondoggle

I have been skeptical of the reliance of many politicians on creation of "green jobs" to help save the economy.  Reason has a new article out that adds weight to my suspicions:

Gulen is not alone in his concerns about overblown claims for green jobs. A 2009 report [PDF], by Hillard Huntington, executive director of the Energy Modeling Forum at Stanford University, also found that promoting green energy is not a jobs generator. Huntington calculated the number of jobs per million dollars invested in various types of electricity generation. A million dollars invested in solar power produces three to five jobs; wind 1.6 to 6.5 jobs; biomass 1.8 to 6.5 jobs; coal 3.7 jobs; and natural gas two jobs. It looks like renewables are often winners at job creation until Huntington points out that on average an investment of a million dollars produces about 10 jobs.
Another way to look at it is that in the worst cases, investing in solar power destroys seven jobs, wind eight jobs, biomass eight jobs, coal six jobs, and natural gas eight jobs, each compared to the 10 jobs generally created per million dollars of investment. All subsidies to the electric power sector divert money that would otherwise be invested in higher value wealth and job-creating activities.
 This leads me to understand why energy in California costs so much in comparison with other states.

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