Green Jobs for Breakfast

Feb 13, 2009

Yesterday morning I appeared on the nationally syndicated public radio program The Diane Rehm Show, to discuss "green jobs" and the economic aspects of environmental policy. Joining me were David Leonhardt of the New York Times, and Bracken Hendricks of the Center for American Progress.

What is a green job? It turns out this seemingly simple question has a very broad answer, from jobs at windmill manufacturing plants to plumbers who might do things in a slightly more efficient way than before. Like many environmental labels its applicability is apparently in the eye of the beholder. Unfortunately I think this vagueness could make it extremely difficult to collect objective data on green jobs--making it difficult to accurately measure the economic effects of policy.

David Leonhardt said that "green jobs are the single best hope for driving the post-bubble economy," but rightly pointed out that we use the energy sources we do for a reason--they're the most affordable. (He said "cheap" but $4/gallon gas wasn't that long ago). So how to move toward new energy sources?

The proposed answer is apparently to raise the price of current energy sources, which would make newer energy sources "relatively more affordable" and therefore more able to compete in the marketplace. Of course doing so would also make energy more expensive on an absolute price basis. I think if a person's heating bill exceeds their budget, it's of small comfort that they have a broader array of energy sources they cannot afford. As a nation we must remember that energy costs are borne every day by real families and businesses, and reflected in the prices we pay for almost everything.

The sustainable way forward is to remove barriers to energy innovation. Take, for instance, renewable energy technologies--64 plants in the last several years have been blocked by NIMBYs. Diane asked for an example, which I was happy to supply. Congressman Jay Inslee (D-WA) called into the show and I was very encouraged to hear him condemn the NIMBY phenomenon.

You can listen to the full panel discussion online. The show opens with a taped interview of Secretary of the Interior Ken Salazar; the panel begins about 10 minutes in.

Note: the Chamber's National Chamber Foundation will be hosting an event examining green jobs next Tuesday.

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