On the eve of destruction.
From Bloomberg, “Job Losses From Obama Green Stimulus Foreseen in Spanish Study“:
March 27 (Bloomberg) — Subsidizing renewable energy in the U.S. may destroy two jobs for every one created if Spain’s experience with windmills and solar farms is any guide.
For every new position that depends on energy price supports, at least 2.2 jobs in other industries will disappear, according to a study from King Juan Carlos University in Madrid.
U.S. President Barack Obama’s 2010 budget proposal contains about $20 billion in tax incentives for clean-energy programs. In Spain, where wind turbines provided 11 percent of power demand last year, generators earn rates as much as 11 times more for renewable energy compared with burning fossil fuels.
The premiums paid for solar, biomass, wave and wind power – – which are charged to consumers in their bills — translated into a $774,000 cost for each Spanish “green job” created since 2000, said Gabriel Calzada, an economics professor at the university and author of the report.
Bloomberg adds that Acerinox SA, the steel company, decided against expanding in Spain because of energy costs, choosing the United States and South Africa instead.
South Africa, the land of rolling blackouts? Spain must be really bad to make more South Africa attractive to heavy electricity consumers like a steel mill.
(Hat tip: Chris Horner.)
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