Millions of Green Jobs?

This story originally appeared in the Exception Magazine, Maine's premier online news organization.

Throughout the U.S. presidential campaign, the Democratic candidates tried to top each other with promises of green jobs that would revitalize broken economies in the heartland and get America off of foreign oil. Because green jobs are a relatively new concept, there have been few, if any political consequences for boldly touting them during policy pitches.

Barack Obama's energy plan, for example, will supposedly create five million "Green Collar Jobs" by investing billions in renewable energy, efficiency measures, home weatherizations, tighter emissions standards and "clean coal" technology. Mr. Obama is currently pledging green jobs to drum up support for his economic stimulus package as well as his future programs to combat climate change.

While there are no official government statistics or scholarly works confirming the total number of current green jobs in America, according to a report published in October 2008 by the United States Conference of Mayors, there were at least 750,000 green jobs in the United States as of 2006. Over half were in the engineering, legal, research and consulting category, with another 127,246 employed in a job related to renewable power generation.

The Center for American Progress (CAP), a center-left think-tank, argues that a national 100 billion dollar green economic recovery program would reduce unemployment and create two million green jobs in two years. For perspective, Maine would gain 9,132 green jobs and see its unemployment rate fall by over a percentage point.

Back in September, Green Jobs Now, a project of Green For All, 1Sky and Al Gore's We Campaign, got more than 50,000 Americans to publicly proclaim "We're ready for green jobs now!"

Unfortunately, for green jobs advocates, however, while workers may want green jobs, the market is not quite ready to create millions of them just yet.

"From July to November of last year, applications have gone up 100% while job postings have gone down 50%" said Peter Beadle, founder of the green jobs listing service Greenjobs.com.

An informal Exception Magazine survey of America's most prominent online green job boards confirms there are barely a few thousand new green jobs offered each month nationwide. Without an unprecedented intervention in the marketplace by the government, millions of green jobs may not develop. Furthermore, the recession is hurting the green sector as it is the rest of the economy.

"Unfortunately, our listings dropped sharply in October through December along with the general economy," said Dr. Rona Fried, President of SustainableBusiness.com, which also runs another popular green jobs board. "I was surprised to see it happen. My guess is that every business and organization froze and decided to wait and see."

Yet the green job outlook looks more promising now that George W. Bush has left office.

"Job listings are stronger so far in January and I expect a good year because of Obama and because of the overall growth in our industry" said Dr. Fried.

A broad coalition of venture capitalists, big businesses, labor groups, Democrats and environmental organizations have thus seized the green jobs message to kick start their various lobbying efforts with the new administration. Labor groups such as the United Steel Workers and SEIU have teamed up with environmental organizations like the Sierra Club to form the Blue-Green Alliance, which represents the "potential" for green jobs, as a spokesperson explained it to The Exception. Silicon Valley venture capitalists like John Doerr have been testifying in Washington this month, trying to convince Congress to grant lavish subsidies on their green investments. And CAP, business leaders and politicians will congregate with the Blue-Green Alliance for the 2009 Green Jobs Expo in Washington, DC from February 4-6.

But skeptics are starting to question how the concept of green jobs is being used to push government programs.

The Institute for Energy Research (IER), a free-market think-tank, has published one of the first comprehensive critiques of the green jobs research that was prepared by the Council of Mayors and the Center for American Progress.

Free market advocates do not oppose an economy that builds solar panels and electric cars. But when government bureaucrats pick the winners and losers, "the package is rewarding the politically connected groups that are close to the Democrats," Robert Murphy, one of the IER report's authors, explained to the Exception Magazine.

There is also a debate over whether an extensive federal green jobs policy will harm jobs in other sectors. Some green jobs advocates "are ignoring the jobs that will be destroyed by taxing or borrowing," said Mr. Murphy.

When the Obama administration moves forward, as anticipated, with a federal cap and trade system to reduce America's carbon emissions, expect more thorough arguments from both sides regarding the actual economic benefits of a green jobs subsidy.

Comments

[Ruthie Mundell]

For decades, we've given dirty industries tax breaks and handouts. It's high time we shift some of that to cleaner industries!

I work at a thrift store for building materials, where folks can donate entire homes. Instead of hiring one bulldozer to wreck an unwanted building, the homeowner hires a whole crew of green workers to "deconstruct" it by hand. Up to 80% can be recycled or preserved for reuse. It's cleaner because toxins (like asbestos) are carefully captured, not sent up in a cloud of dust. And of course, it causes less pollution because we don't need to mine, chop down, manufacture, and ship new products around the world.

The coolest part is that it can cost less! Instead of paying landfill fees, the homeowner pays people to work. He also earns thousands in tax deductions, because the lumber, doors, cabinets, flooring, etc. are being donated to our thrift store. Then, we can sell it very cheaply, making repairs more affordable for low-income folks, charities, and small businesses. Everyone wins!

There are 500 stores like ours around the country, and the industry IS growing fast. At my store alone (Community Forklift, in the DC area), in only three years of existence, we've helped to create 25 jobs and kept over $3 million worth of materials from going into the landfilll. We're a great example of the fact that there are other creative, sustainable ways of doing business, and our government should support this kind of American innovation.

[sheila]

the best investment, jobs creator, property value stabilizer, environmental protector, and civic engager IS ready for 2 million jobs right now - the problem is that our politicians are owned and operated by Big Energy. it used to be only Big Oil, Gas and Coal, but now it's also Big Renewables and Big Tranmsission.

if we could purge the influence of these liars and mercenaries, we could get what we need. i'm referring, to feed in tariffs coupled with loans for RATEPAYER GENERATION of clean, green power that does not kill our wilderness (all), deplete groundwater (CSP, nuclear, coal, gas + geothermal), emit enormous GHGS (all fossils plus BIG TRANSMISSION), or monopolize power (all). it PAYS normal people to do the right thing. rooftop would scale up as fast as it has in Germany, and 2 million would be an easy number...

so, these jobs are ready to rock across the nation. manufacturing and installing solar, efficiency, microwind, smart meters, etc. let's get policy in line with OUR interests and stop opening another vein to Big Energy in the renewable era!

[Kris Anderson]

Part 3 of 3 parts to my comment:

Look to the future! Use tax money wisely, please! And, stop haggling over who gets how much money-- you are professionals, or should be- meaning, taxpayers have reason to expect you, our duly elected representatives, all of you, will act as true fiduciaries- with our, with taxpayer interests, the interests of the American public and the nation uppermost in mind! Now, please get to work~ time is of the essence.

[Kris Anderson]

Part 2 of 3 parts to my comment:

A mix of tax incentives, low-interest start-up and expansion loans, help with licensing and other bureaucratic hurdles-- all these have a place.

Next, our government built the fossil fuel industry and, is still supporting it. Until recently, there was an active discussion and eventual consensus, that taxpayer support for industry should be focused on new, emerging industries- possible growth sectors. We must build our future competitive abilities, not support mature industries, such as oil and gas. This is not 'picking winners & losers'. It's good stewardship.

Supporting new, emerging industries, those with growth potential, helping the US compete in world markets, supporting these emerging industries IS appropriate use of government money! The oil and gas industry has racked up record profits for most of the past eight or more years, all the while continuing to receive tax credits, preferential access via land leases and other government support. During this same period, other countries have been using resources to conquer new solar and wind energy product markets, working to achieve product domination.

Now, THAT's an outrage. Why not refocus those precious tax resources? Fossil fuel companies are creating products which are bad for our climate; they are being overtaken by international market forces anyway. Why are taxpayers still paying their way? The more time we waste on ancient tech, the farther we fall behind our European, Chinese and Japanese competitors in these new alternative energy product markets.

[Kris Anderson]

Part 1 of 3- of my full comment:

First of all, most 'green job' growth will come in traditional trades- from plumbers, carpenters, roofers, that sort of thing, not in the high-tech area. Counting 'green jobs' as only those high tech and engineering areas skews job growth estimates to the low side- by QUITE a LOT. Stimulus plans putting more of folks in standard trades to work insulating (super weatherizing) homes, mounting solar panels and residential wind turbines on roofs, adding to and refurbishing the electric grid-- growth in these employment areas will be most significant.

To get this moving, will require a dose of Keynesian economics - a boost on the demand side. The more direct the boost to consumers interested in purchasing new solar and wind products, electric cars and, other alternative energy products, the more efficiently taxpayer money will work to stimulate growth in these new industries. Growth in the industies will mean rising employment.

But, this is only part of the answer. Of course, companies in the new industries must find economic conditions which facilitate their development and growth. For some hints here, we could look to Europe, Germany in particular where growth in solar technology is robust but, elsewhere in the EU, too. EU taxpayers have underwritten the cost to launch these new industries- by supporting research and development work and by standing as the first buyers, thereby creating markets, lowering product prices for consumers.

[Investor]

Lots of green energy and infrastructure development also means huge sums being spent on the products and services of green companies. Stocks of these companies could benefit significantly.

For anyone interested in green and socially responsible investing, I have one of the most popular sites on the web on the subject. It also covers the latest related global news and research too. It's at http://investingforthesoul.com/

Best wishes, Ron Robins

[SonofLiberty1]

Couple of months ago I realized that Gamesa, the Spanish Wind Company, was located not far from where I live.

I sent them my resume...a­nd no response.

Turns out they had a reason...

They let many workers go and then closed the plant only to surface in another County.

So much for green jobs around Philadelphia:(