Russ Steele
Our local left leaning former newspaper editors writes about our local economy and has this to say about AB32 The Global Warming Solutions Act of 2006, which includes host of regulations that impact small businesses:
The German think tank Rheinisch-Westfälisches Institut für Wirtschaftsforschung has published a report titled Economic Impacts from the Promotion of Renewable Energies: The German Experience. It points out that the "green jobs" that have been created through government subsidies are more than offset by the inefficiency of the resulting energy production:
Why is it that the Governor and Legislature think that California can succeed in creating green jobs with out destroying existing jobs when Spain and Germany have failed. Why do they think a California Cap and Tax program will produce economic growth in California when similar programs in Germany and Spain have done just the opposite?
Our local left leaning former newspaper editors writes about our local economy and has this to say about AB32 The Global Warming Solutions Act of 2006, which includes host of regulations that impact small businesses:
Most of the programs from AB32 won’t go into effect until 2012 anyway, when the economy will hopefully improve. In addition, the premise that AB32 will destroy jobs is unproven. Proponents argue it will create jobs.Really? AB32 was patterned after the European Union's green jobs, CO2 reduction, and renewable energy programs. Those programs in Spain and German have been an economic disaster, reducing jobs and driving up energy costs. I wrote about the Spain experience here. After years of promoting "green jobs," Spain has the highest unemployment rate in Europe, standing at an alarming 17.5 percent. Every green job cost the Spanish economy 2.5 non-green jobs.
The German think tank Rheinisch-Westfälisches Institut für Wirtschaftsforschung has published a report titled Economic Impacts from the Promotion of Renewable Energies: The German Experience. It points out that the "green jobs" that have been created through government subsidies are more than offset by the inefficiency of the resulting energy production:
While employment projections in the renewable sector convey seemingly impressive prospects for gross job growth, they typically obscure the broader implications for economic welfare by omitting any accounting of off-setting impacts. These impacts include, but are not limited to, job losses from crowding out of cheaper forms of conventional energy generation, indirect impacts on upstream industries, additional job losses from the drain on economic activity precipitated by higher electricity prices, private consumers' overall loss of purchasing power due to higher electricity prices, and diverting funds from other, possibly more beneficial investment.More details on the German experience here.
Why is it that the Governor and Legislature think that California can succeed in creating green jobs with out destroying existing jobs when Spain and Germany have failed. Why do they think a California Cap and Tax program will produce economic growth in California when similar programs in Germany and Spain have done just the opposite?
I have to agree with Assemblyman Dan Logue, it is time to resend AB32 at least until the economy recovers.
In future posts I will review some AB32 studies, starting with one by the Legislative Analyst Office in my next post. Stay Tuned!
