Thursday, June 25, 2009

Spain Has Spent About $1m Per Green Job; and Has Lost More Than 2 Jobs for Every Green Job Created

WASHINGTON -- The Spanish professor is puzzled. Why, Gabriel Calzada wonders, is the U.S. president recommending that America emulate the Spanish model for creating "green jobs" in "alternative energy" even though Spain's unemployment rate is 18.1%-- more than double the European Union average -- partly because of spending on such jobs?

Calzada, 36, an economics professor at Universidad Rey Juan Carlos, has produced a report which, if true, is inconvenient for the Obama administration's green agenda, and for some budget assumptions that are dependent upon it.

~George Will's column "Tilting at Green Windmills"

The following are key points from the "Study of the Effects on Employment of Public Aid to Renewable Energy Sources":

1. As President Obama correctly remarked, Spain provides a reference for the establishment of government aid to renewable energy. No other country has given such broad support to the construction and production of electricity through renewable sources. The arguments for Spain’s and Europe’s “green jobs” schemes are the same arguments now made in the U.S., principally that massive public support would produce large numbers of green jobs. The question that this paper answers is “at what price?”

2. We find that for every renewable energy job that the State manages to finance, Spain’s experience cited by President Obama as a model reveals with high confidence, by two different methods, that the U.S. should expect a loss of at least 2.2 jobs on average, or about 9 jobs lost for every 4 created, to which we have to add those jobs that non-subsidized investments with the same resources would have created.


3. The study calculates that since 2000 Spain spent €571,138 ($800,000) to create each “green job”, including subsidies of more than €1 million ($1.4 million) per wind industry job. The study calculates that the programs creating those jobs also resulted in the destruction of nearly 110,500 jobs elsewhere in the economy, or 2.2 jobs destroyed for every “green job” created.

4 Comments:

At 6/25/2009 9:16 AM, Blogger Colin said...

This comment has been removed by the author.

 
At 6/25/2009 10:04 AM, Blogger ExtremeHobo said...

We need the CEO of Dollar Tree to be our president. Or anyone else that understands what "bang for your buck" is...

 
At 6/25/2009 11:39 AM, Blogger happyjuggler0 said...

Green jobs is nothing more than the broken window fallacy, and has been a known failure for over 150 years.

 
At 6/25/2009 2:01 PM, Blogger QT said...

Happyjuggler0,

It all depends what jobs you count as green jobs.

 

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