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28 May 2009 @ 04:19 pm
Green idiocy costs jobs, destroys economies  

The following text was borrowed from an article, found at the following link:
TonyBlankley/2009/05/27/economic_reality_of_5_million_green_jobs

[...] in March, one of Spain's leading universities, Universidad Rey Juan Carlos, published an authoritative study "of the effects on employment of public aid to renewable energy sources." The report pointed out: "This study is important for several reasons. First is that the Spanish experience is considered a leading example to be followed by many policy advocates and politicians. This study marks the very first time a critical analysis of the actual performance and impact has been made. Most important, it demonstrates that the Spanish/EU-style 'green jobs' agenda now being promoted in the U.S. in fact destroys jobs, detailing this in terms of jobs destroyed per job created."

The central finding of the study is that -- treating the data optimistically -- for every renewable-energy job that the government finances, "Spain's experience … 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."

Despite expensive and extensive green-job policies, a surprisingly low number of jobs were created. And about two-thirds of those "green" jobs were just to set up the energy source, in construction, fabrication, installation, marketing and administration. Only 10 percent of the green jobs created were permanent jobs actually operating and maintaining the renewable sources of energy.

Each wind industry job created in Spain required a subsidy of about $1.4 million. Overall, the average subsidy cost for each green job was about $800,000 (571,138 euros). And to create about 50,000 green jobs, Spain lost 110,000 jobs elsewhere in the economy, principally in metallurgy, nonmetallic mining and food processing and in the beverage and tobacco industries.

Each green megawatt brought on line destroyed 5.28 jobs elsewhere in the economy (8.99 by photovoltaics, 4.27 by wind energy and 5.05 by mini-hydropower). The total higher energy cost -- the higher cost of renewable energy over the market price of carbon-based energy -- between 2000 and 2008 was about $10 billion. Moreover, the report concluded, "These costs do not appear to be unique to Spain's approach but instead are largely inherent in schemes to promote renewable energy sources."

The high cost of green energy predictably drove energy-intensive Spanish companies and industries out of Spain to countries with cheaper carbon-based energy, while the cost to Spanish taxpayers of renewable-energy subsidies was "enormous … 4.35 percent of all (value-added taxes) collected, 3.45 percent of the household income tax, or 5.6 percent of the corporate income tax."

The paper referred to is here:
http://www.juandemariana.org/pdf/090327-employment-public-aid-renewable.pdf