Green jobs cannot reduce unemployment when they require significant government assistance. When the President and Congress talk about green jobs, they are talking about ones created via federal tax breaks, subsidies, or outright mandates. For example, wind and solar-generated electricity already enjoy subsidies nearly 50 times higher per unit of energy output than ordinary coal and 100 times higher than natural gas.
Kenneth Green sums this up quite well: “With $2.3 billion in Recovery Act tax credits allocated for green manufacturers, President Obama and other Democratic politicians have high hopes for green technology. But their expectations clash with both economic theory and practical experience in Europe. Green programs in Spain destroyed 2.2 jobs for every green job created, while the capital needed for one green job in Italy could create almost five jobs in the general economy. Wind and solar power have raised household energy prices by 7.5 percent in Germany and Denmark has the highest electricity prices in the European Union. Central planners in the United States trying to promote green industry will fare no better at creating jobs or stimulating the economy.”
