An estimate of the cost of green jobs

From the 12/29 NYTimes (Focus on Weatherization is Shift on Energy Costs):

About 140,000 houses will be weatherized with public help this year, a total that President-elect Barack Obama has promised to raise to one million, to reduce energy consumption and cut energy costs for households and taxpayers, who often absorb those costs for the poor. This would represent a historic shift in emphasis for the federal and state governments, reducing poor people’s energy bills instead of helping to pay them.

Weatherizing a million homes annually would also create about 78,000 jobs for a year, according to the federal Energy Department’s weatherization project director, Gil Sperling.

The current 140,000 annual total creates about 8,000 jobs, Mr. Sperling said.

Although that is a tiny fraction of the five million green-collar jobs that Mr. Obama promised in the campaign, “it’s a decent number of jobs per dollar spent,” said Harry J. Holzer, an economist at Georgetown and at the Urban Institute, a nonprofit group in Washington. “The work is productive, and the jobs are at a mix of skill levels.”

Congress added $250 million to the weatherization budget for the fiscal year that began Oct. 1. Energy experts say that money could be effectively spent in low-income households and in households that have no need of public assistance.

Assuming the $250 million generates 8000 jobs, the cost of each green job is $31,250.

Comments

[Sherry]

We have so much available to us in the way of technology hybrid plug in's and free energy solar and wind. We have been spending billions upon billions in bail outs. Why doesn't our nation see the need to bail our country out of it's dependence on foreign oil? It would cost the equivalent of 60 cents a gallon to charge and drive an electric car. The electricity to charge the car could come from solar or wind generated electricity. If all gasoline cars, trucks, and suv’s instead had plug-in electric drive trains, the amount of electricity needed to replace gasoline is about equal to the estimated wind energy potential of the state of North Dakota. Why don't we use some of the billions in bail out money to bail us out of our dependence on foreign oil? This past year the high cost of fuel so seriously damaged our economy and society that the ripple effects will be felt for years to come. Why not invest in setting up some alternative energy projects on a national basis, create clean cheap electricity, create millions of badly needed new green collar jobs, and get out from under our dependence on foreign oil. What a win -win situation that would be. There is a great new book out called The Manhattan Project of 2009 Energy Independence NOW by Jeff Wilson. I highly recommend this book for anyone interested in alternative energy. www.themanhattanprojectof2009.com

[Eric in Santa Fe]

The $31,250 is not the cost of a green job.

It is the cost of a green job plus the cost to improve energy efficiency, which is also a valuable result. If the efficiency nets a 20% reduction in energy costs, then the homeowners or school districts would spend the savings elsewhere.

Letting the local power companies delay or avoid the building of new plants would be, of course, another good. While a Smart Grid investment will be enough to cover growth, it is unlikely to be enough to cover growth plus growth in waste.

If what you are criticising is the foolish positioning of the proposal as a "jobs package", then more power to ya. As a criticism of the proposal itself, your dollar value calculation is equally misleading.

As a handout to poor people, it is less defensible than, say, weatherising schools, courhouses, police stations, etc. Those would reduce long-term public expenditures, allowing lower taxes. But, in either case, the value of the resulting efficiency improvement is not zero.

[John Whitehead]

Eric,

I'm not criticizing the proposal.

[Hydra]

Boy, I can't wait to get THAT green job.

[Sandeep Channa]

i liked your thought on green, lets share it to more and more with the help of justmeans.... http://www.justmeans.com/ ... the only site to learn new stuff revolved with "Corporate Social Responsibility" "Green Jobs" "Waste Management" "Energy" "Ethical Consumption" "Politics and Governance" "Social Investment" "Social Media" and "Sustainable Business"