Wednesday, March 18, 2009

Green Jobs: Myth or Reality?

The debate over the impact of "green" jobs on the economy continues. The latest salvo came Monday from a group of university researchers seeking to shoot down studies showing that spending billions of dollars on stimulus for renewable energy, energy efficiency and "smart grid" will help employ millions of people. Not so fast, the researchers said – many of those jobs will simply be shifted from existing "fossil fuel-based sectors," and others shouldn't be classified as "green" at all. Instead of spending government money on backing those industries, the authors of the "Seven Myths about Green Jobs" report want the free market to guide where job growth happens...greentechmedia

This is from the abstract of the research paper:

A rapidly growing literature promises that a massive program of government mandates, subsidies, and forced technological interventions will reward the nation with an economy brimming with green jobs. Not only will these jobs improve the environment, but they will be high paying, interesting, and provide collective rights. This literature is built on mythologies about economics, forecasting, and technology.

Myth: Everyone understands what a green job is.

Reality: No standard definition of a green job exists.

Myth: Creating green jobs will boost productive employment.

Reality: Green jobs estimates include huge numbers of clerical, bureaucratic, and administrative positions that do not produce goods and services for consumption.

Myth: Green jobs forecasts are reliable.

Reality: The green jobs studies made estimates using poor economic models based on dubious assumptions.

Myth: Green jobs promote employment growth.

Reality: By promoting more jobs instead of more productivity, the green jobs described in the literature encourage low-paying jobs in less desirable conditions. Economic growth cannot be ordered by Congress or by the United Nations. Government interference - such as restricting successful technologies in favor of speculative technologies favored by special interests - will generate stagnation...

Myth: Imposing technological progress by regulation is desirable.

Reality: Some technologies preferred by the green jobs studies are not capable of efficiently reaching the scale necessary to meet today's demands and could be counterproductive to environmental quality.

In this Article, we survey the green jobs literature, analyze its assumptions, and show how the special interest groups promoting the idea of green jobs have embedded dubious assumptions and techniques within their analyses. Before undertaking efforts to restructure and possibly impoverish our society, careful analysis and informed public debate about these assumptions and prescriptions are necessary.

1 comment:

Tycoon Blogger said...

I clearly think that the authors of the study have a hidden agenda. I am a big believer in green jobs and feel strongly that the growth of the green collar industry will be the key driver for the growth of the US and world economy. I run a green jobs board at http://greenjobscene.com and over the last two months the number of jobs that have been posted exceeds all of the last year.