Thursday, January 15, 2009

Green Jobs

A recent study by the Institute for Energy Research in the US agues that subsidising "green jobs" may not be such a good idea after all:

Unfortunately, it is highly questionable whether a government campaign to spur “green jobs” 

would have net economic benefits.  Indeed, the distortionary impacts of government intrusion 

into energy markets could prematurely force business to abandon current production 

technologies for more expensive ones. Furthermore, there would likely be negative economic 

consequences from forcing higher-cost alternative energy sources upon the economy.  These 

factors would likely increase consumer energy costs and the costs of a wide array of energy- 

intensive goods, slow GDP growth and ironically may yield no net job gains. More likely, they 

would result in net job losses. 

For full report see here.

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