It Seems Hard To Create "Green" Jobs

See Where the Jobs Aren’t by David Brooks, NY Times, 9-5-11. (Hat tip: Marginal Revolution) Excperpt:

"Recently, Aaron Glantz reported in The Times on some of the disappointments. California was awarded $186 million in federal stimulus money to weatherize homes. So far, the program has created the equivalent of only 538 full-time jobs. A $59 million effort to train people for green jobs in California produced only 719 job placements.

SolFocus designs solar panels in the United States, but the bulk of its employment is in China where the panels are actually made. As the company spokesman told Glantz, “Taxes and labor rates” are cheaper there.

There’s a wealth of other evidence to suggest that the green economy will not be a short-term jobs machine. According to Investor’s Business Daily, executives at Johnson Controls turned $300 million in green technology grants into 150 jobs — that’s $2 million per job.

Sunil Sharan, a former director of The Smart Grid Initiative at General Electric, wrote in The Washington Post that the Smart Grid, while efficient and environmentally beneficial, will be a net job destroyer. For example, 28,000 meter-reading jobs will be replaced by the Smart Grid’s automatic transmitters.

A study by McKinsey suggests that clean energy may produce jobs for highly skilled engineers, but it will not produce many jobs for U.S. manufacturing workers. Gordon Hughes, formerly of the World Bank and now an economist at the University of Edinburgh, surveyed the landscape and concluded: “There are no sound economic arguments to support an assertion that green energy policies will increase the total level of employment in the medium or longer term when we hold macroeconomic conditions constant.”

Many of the most celebrated green tech companies are foundering despite lavish public support. Evergreen Solar, the recipient of tens of millions of dollars in state support, moved its manufacturing facility to China before filing for bankruptcy protection.

The U.S. Department of Energy poured $535 million in loans into Solyndra, a solar panel maker backed by George Kaiser, a major Democratic donor.

The Government Accountability Office discovered that Solyndra had been permitted to bypass required steps in the government loan guarantee process. The Energy Department’s inspector general criticized the department for not maintaining e-mails that discussed how the loan guarantee winners were chosen.

Late last month, Solyndra announced that it was ceasing operations, laying off its 1,100 employees. The Department of Energy placed the wrong bet, potentially losing the taxpayers half-a-billion dollars."

"In 2009, Josh Lerner of Harvard Business School published a useful book called “Boulevard of Broken Dreams.” He found that for each instance in which the government has successfully promoted entrepreneurial activity, there is a pile of instances in which it failed."