Center for Advanced BioEnergy Research, University of Illinois at Urbana-Champaign

Wednesday, July 8, 2009

Not all Green Jobs were Created Equal

AltEnergyStocks.com

The stimulus package and the climate bill recently passed by the US House and now being considered in the Senate will create jobs while delivering a boost to our economy. A "green" stimulus swill create approximately three times as many jobs as the same amount of spending in traditional energy industries. But clean energy is too diverse to consider a single industry. What are the differential jobs creation effects of different types of clean energy and are the most effective sectors getting the most money?

Tom Konrad, Ph.D., CFA

In my next Greener Money column for Smart Energy Living Magazine, I look into the economic behind Presidential and green claims that the stimulus package and the Climate bill just passed by the House can both create economic growth while cleaning up the economy. I found most of the rhetoric coming from the greens to be disappointing. For the most part, it touts the numbers of "Green Jobs" which will be created, without looking at the cost. For instance, while the report from the American Solar Energy Society does a good job defining "green job" and counting them, it does not look at what would have happened if we put our resources elsewhere.

Probably the most incredible claim I heard from on the green side came from Jigar Shah, who told me via email that spending on solar photovoltaics produces "more jobs per federal dollar invested" than other green technologies. He did not respond to two requests for his source. I found this claim hard to believe, because solar manufacturing is very capital intensive, and manufacturing jobs are likely to be high-skill and highly paid. The labor-intensive installation is unlikely to completely make up for capital intensive (and often overseas) manufacturing. Clean energy investments which are not capital intensive, such as weatherizing homes, are likely to produce more jobs because 1) less money is spent on equipment and more on labor, and 2) the workers are typically paid less.

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