A new report argues that claims that the low-carbon economy can deliver so-called 'green collar' jobs are far-fetched and unsubstantiated by official measures.
The Green Mirage from Civitas, examines the evidence from existing green policies, as well as the European Commission's future projections. Both suggest that the economic benefits to Europe as a whole will be marginal at best, and non-existent for Britain.
The research looks at examples of economic models in Europe, and suggests the ambitious climate policies will have only 'slight' net positive benefits in terms of GDP and employment by 2020. This is also dependent on the assumption that Europe remains dominant in the world export markets for low-carbon technologies.
The report's author John Constable says that in the period 2002-2010 the UK spent £5 billion subsidising dedicated renewable electricity generators, at a cost of £230,000 per wind industry worker over that period. Subsidy per wind industry worker in the year 2009/10 amounted to £54,000, which is greatly in excess of the median earnings in either the public (£29,000) or the private sectors (£25,000).
Mr Constable argues that subsidising renewables will impose high costs on the rest of the economy. This will result in net job losses and loss of international competitiveness. A subsidised artificial market for low-carbon industries will provide premature reward for unready technologies, and actively discourage further invention. But the report does however admit that this is precisely the kind of innovation that is essential for a real low-carbon transition in the longer term. Current green policies waste resources now that could be better spent on improving low-carbon technologies for the future.
He concludes: 'Even if successfully implemented, the current low-carbon agenda would require that the energy sector takes up a much larger share of the overall economy than is currently the case. Since this sector is almost entirely dependent on state mandates for its income and operation, it would in effect enjoy a state-approved monopoly, with the rents being shared with the labour force at the expense of the rest of the economy, where there would be net job losses.
For more information on the Civitas report click
here.
