Green Collar Jobs

Chris Horner, famous author, ponders green jobs:

The EU economy, despite having long mandated all sorts of global warming-style gadgets (the industries producing which being among the most feverish of Kyotophiles both here and there), they still are mired in deep unemployment when they apparently should be busy selling everyone windmills. What happened? [...]

I would like to hear some reasoned comments supporting this, preferably not from anyone associated with the windmill or solar-panel industries or their affiliated advocacy groups.

Please begin by telling me which countries have found themselves prosperous as a result of imposing GHG restrictions. The more detail the better — I’ve spent enough time looking to despair of ever finding this Wirtschaftwunder on my own — with particular attention paid to the baselines you are using to support your claim.

I'm neither an economist nor associated with the windmill industry, but Denmark comes to mind...

Denmark's market economy features very efficient agriculture, up-to-date small-scale and corporate industry, extensive government welfare measures, very high living standards, a stable currency, and high dependence on foreign trade. Denmark is a net exporter of food and energy and has a comfortable balance of payments surplus and zero net foreign debt.

Denmark recently reported its lowest unemployment in 30 years:

The Danish unemployment rate fell again in December to 2.7 percent, hitting its lowest level in more than 30 years, official figures showed Thursday. [...]

Denmark's economy has steadily expanded over the past four years and the number of people out of work in the Scandinavian country has shrunk by 112,800, or 60 percent, since December 2003.

That's after Denmark joined Kyoto in 2002 and isn't doing too bad in reducing emissions compared to other countries.

Though this cannot all be attributed to one company or one sector in their economy, Vestas is a Danish wind turbine company that's doing quite well for itself and the country.

In their own words [PDF]; Aidan Cronin, International Policy Advisor at VESTAS Wind System summarizes their outlook on wind power and the European economy:

Europe is at a crossroads in terms of employment creation and creation of our future society. One of the biggest challenges we face is the provision of stable, secure, and competitive energy. Supporting the development of renewable energy resources has the twofold result of solving one of our most pressing problems while building a new innovation based industry at the same time. Not a day goes by without mention of growth, innovation, employment, and maintaining European leadership. The expansion of the EC with 10 new countries has been a priceless gift in terms of extra brain power and gives us an opportunity in Europe to channel our resources in specific targeted sectors that will ensure Europe's continued success in the future. Wind has in many areas taken over from the more traditional ship building industry. With the correct European and National focus on renewables and wind, this sector can only grow to be a large employer in a world that is increasingly worried about energy supply.

Vestas recently reported yet another smashing quarter:

Vestas rose 7.7 percent after it announced its 2007 earnings margin before interest and tax was about 9 percent, more than the 8 percent predicted in November. Revenue probably rose to 4.85 billion euros ($7.19 billion), 7.8 percent more than previously forecast.

This, presumably, is in part due to growing interest in a projected $7 trillion worldwide market. As for jobs, Vestas currently employs 14,500 people worldwide and continues to add jobs in Denmark.

Of course it's debateable whether we can compare our economy to that of Denmark. Also, Chris Horner sets a pretty high bar: that green products exclusively lead to an economic boom. As part of a mix of various industries within a large, very heterogeneous economy, wind turbines, solar panels, microturbines, etc. could reasonably be considered a growth industry capable of producing jobs that otherwise would not be there. After all, we don't necessarily expect the coal industry to single-handedly bring us out of the recession either.