The Enron of environmentalism

‘Green jobs’ threaten to put us into the red

By Ezra Levant, Toronto Sun

In the great public debate about the future of energy, the oilsands aren’t just compared against other oil producers; they’re compared against potential future energy sources too (even if they’re still in their infancy and largely untested on the scale required to displace oil).

This is why when environmentalists promote their vision for a new economy based on renewable fuels, like wind and solar, they put tremendous emphasis on their promise that building more turbines and solar cells will only increase our prosperity, creating millions of “green jobs” in those industries, while improving the environment, with no additional costs to any of us.

“Millions of new jobs are among the many silver-, if not indeed gold-plated, linings on the cloud of climate change,” Achim Steiner, head of the UN’s environmental program, announced at a world climate-change conference in 2007.

“These jobs are not for just the middle classes — the so-called ‘green collar’ jobs — but also for workers in construction, sustainable forestry and agriculture, engineering and transportation.”

Spain and Germany, where governments have led the rush into subsidizing wind and solar power, he said, have “already created several hundred thousand jobs.”

Jim Harris, past leader of Canada’s Green Party and a bestselling business author, is warning Canadian politicians that they are missing the boat on a great job-creating opportunity in failing to keep up with European levels of renewable energy subsidies.

“Spain has just committed to creating a million green energy jobs over the next decade,” he wrote in an October 2009 article called Green Jobs Will Pay for Themselves.

As luck would have it, Spain is a pretty instructive country for Canadians to look to as a comparison to our own situation, since it has a population that’s similar in size (Canada population is 33 million; Spain’s is 40 million) and in 2008 had a roughly similar-sized economy (Canada’s GDP is $1.3 trillion; Spain’s is $1.4 trillion).

And Spain has truly been a leader in throwing all its policy muscle behind the green-economy effort.

Environmental groups that had argued for decades that if we would only try switching from our fossil fuel habit, we would discover how achievable it is to create a flourishing economy without them, finally had in Spain the pilot project they had been asking for.

But, although you wouldn’t know it from the cheerleading of environmentalists in Canada, the United States, and the UN, the reality is that back in Spain, the country supposedly leading the way on renewable energy, the truth was that that entire experiment has turned out to be an unmitigated disaster.

In March 2009, economic researchers at Spain’s King Juan Carlos University, after hearing so much of this international praise for their country’s renewable energy policies, and sensing something quite different going on around them, decided to finally examine the benefits and costs to Spain of this massive “green jobs” creation strategy, which has been underway for more than a decade.

The net effect of Spain’s green policy, the authors found, was that it actually “destroys jobs.” Lots of them. The report found a “surprisingly low number” of green jobs created in Spain overall — about fifty thousand — and most of them were only short-term work, such as building and installing facilities: Just one out of every ten jobs created was considered “at the more permanent level of actual operation and maintenance of the renewable sources of electricity.”

But, whether permanent or short-term, for every single so-called green job created in Spain since the government first embarked on the initiative in 1997, the policy killed 2.2 jobs elsewhere in the economy. For every green megawatt of electrical capacity installed, five jobs were wiped out from the economy, often as a result of higher power prices.

“These costs do not appear to be unique to Spain’s approach,” the researchers concluded, “but instead are largely inherent in schemes to promote renewable energy sources,” whether they’re implemented in Japan, Canada, or the United States. In fact, according to the study’s analysis, were the United States to adopt the same policies as Spain has — just like President Obama has said he hopes to — it could expect to create 3-5 million jobs, but it will likely eliminate, based on Spain’s experience, as many as 11 million other jobs in the process.

But that only represents a portion of the economic damage that has befallen Spain as a direct result of the policy. Because the few “green jobs” that were created didn’t just appear out of thin air: They only happened because the government poured billions of taxpayer dollars into the renewable energy sector. Every green job created cost the government €571,138, or about $850,000 (all figures using exchange rates as of late 2009). Every wind-industry job created cost, on average, more than €1 million to create, according to the report – roughly a staggering $1.5 million.

Of course, all that government money has to come from taxpayers, and you don’t need an economist to tell you that higher taxes means less prosperity — and fewer jobs — somewhere else in the economy.

Excerpted from Ethical Oil: The Case for Canada’s Oil Sands by Ezra Levant. Copyright 2010. Published by McClelland & Stewart Limited.

9 thoughts on “The Enron of environmentalism

  1. Wow…..that didn’t take long to get into mainstream media’s pages eh?…………we knew all this over a year ago yet nobody felt it worthy of reporting!

    Could the “floodgates” of truths be opening now that McGuinty has been in the cross hairs of the public awakening that he has literally destroyed Ontario and it’s economy?

    Can’t just blame him though………all Provincial Governments for the last 30 years have set us up for this tragedy!

  2. A week ago the Ottawa Citizen had a
    very negative article about Ontario’s
    green energy fiasco. Safe to say that
    some of the mainstream media is
    beginning to realize that there is a
    story to be told.
    McGuinty’s rhetorical psycho-babble
    about saving the planet by closing our
    dirty, dirty coal plants is starting to wear
    thin. Electricity prices are going up and
    Mr. Joe Average wants to know why.
    Hopefully when the general public
    becomes aware of the reality of the
    wind scam, Dalton’s green fantasy
    world will come crumbling down.

  3. Just recently Pres.Obama allowed the purchase of a bunch of Spanish made wind turbines for the U.S. to prop up the Spanish wind turbine industry.

    So much for creating wind turbine jobs in the U.S.

  4. Our life just keeps getting better…–mcguinty-won-t-rule-out-higher-daytime-hydro-rates?bn=1

    “Higher prices for electricity in peak daytime hours can’t be ruled out as Ontario moves to reduce rates for late evenings and overnight, says Premier Dalton McGuinty.

    “I’m not going to get into that because I’m not the expert,” McGuinty said Wednesday, under pressure from opposition parties asking if his vow to shrink off-peak rates would push other rates up.

    But he did repeat earlier warnings that, in general, electricity prices are “going up” as the government spends $12 billion on new generation and transmission to modernize the hydro system and phase out coal-fired power plants.

    “We’ve got to contend with reality,” McGuinty told the Legislature.”

  5. New bumper sticker “Lost your job yet, keep buying ‘Green’ power”
    Dalton has a clear path to make its citizens over pay for crap hydro, and effectively keep out new manufacturing. A total lose-lose.

  6. Ontario is virtually on the verge of being BANKRUPT!

    Time to take back our Democratic Rights and get rid of any Government that doesn’t have the “best interests” of the taxpayers in mind!


  7. Anybody know the breakdown of the $4 billion of grid spending (I think 1/4 of it is the 3rd line from Bruce, and another billion up north, but if my memory is correct a big chunk is connecting the green supply – a charge previously borne by the supplier.
    The $8 billion figure for generation is more puzzling to me. I guess they are including 1.6 billion for the Beck expansion and another 2.9 billion for the northern hydro projects, but … what else would this be spent on outside of OPG.

    It’s not a small point. The costs are rising because of contracts for useless supply, not because OPG had the audacity to invest in new hydro.

    We get power for under 5 cents from OPG – they aren’t the reason prices are out of control.

  8. Quixote:

    “The secret of happiness is freedom. The secret of freedom is courage.”

    That should about sum it up…

  9. The 8000 MW figure, and much of Dugid’s latest numeric diarrhea, are most likely from

    This is the big renaming of natural gas as “clean”

    It includes about 3000MW of renewables (wind and hydro primarily), and 5000 MW of clean (gas) that the OPA has contracted, and come online between 2005 and now. No nuclear is in that 8000MW, and I don’t think OPG’s been building a whole lot of anything over that time (Big Becky isn’t in that 8000, just some smaller hydro and portions of some gas generation)

    Contrasting between 2005-2010 and committed spending during some other timeframe on entirely different generation is not the basis of a conversation.
    Mr. McGuinty has been arguing the rapid increases are because his government has been investing and the previous government didn’t.
    The facts show the price increases follow the Liberal government’s contracting, instead of investing – the man should not be allowed to his own facts.
    I’m not taking on the privatization proponents here – but I am saying that the contracts we have signed – but can’t be shared with us – are the cause of the increases.
    Not Mike Harris, not Bob Rae, and not new investments in public generation assets.

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