Deutsche Bank Confirms Green Energy Creates Jobs and Economic Growth

home with free electricity
Available: Home with free electric (photo by Kainet, CC 2.0 Sharealike license)

From MIT’s Technology Review comes this column from Kevin Bullis, about a recent report from Deutsche Bank on the economic benefits of investing in new energy projects:

It argues that it’s possible to address challenges related to climate change, energy security, and the financial crisis at the same time by investing in four specific areas: energy-efficient buildings, electric power grids, renewable power, and public transportation. The report cites figures that suggest investing in these areas creates more jobs than investing in conventional energy sources because much of the old energy infrastructure is already in place. It says that “a $100 billion investment in energy and efficiency would result in 2 million new jobs, whereas a similar investment in old energy [such as coal or natural gas] would only create around 540,000 jobs.”

Of course, Obama has already pledged to do something along these lines, and the blogosphere (including me, here) has chimed in as well. But the imprimatur of Deutsche Bank adds some gravitas to the proposal.

If you want to read the report yourself, it’s here.

Study: Make Money and Create Jobs By Greening California’s Economy

Boutiques along Fillmore Street in Pacific Heights
Fillmore Street in San Francisco; Image via Wikipedia

The San Francisco Chronicle reports on the conclusions of a study just completed by the California State Air Resources Board that “going green” will be extremely beneficial to the state’s economy.

Under the California Global Warming Solutions Act of 2006, the state must impose a limit on the amount of pollutants companies emit and expand renewable energy. These changes, along with others, would result in 100,000 new jobs, boost the state economy by $27 billion and increase personal income by $14 billion, the study said.

It’s traditional to believe that becoming green – reducing energy usage, switching to renewable energy, and curbing greenhouse gas emissions – is costly and a net drag on economies. But studies like this one, as well as many others (see the Rocky Mountain Institute website for many more examples), show again that the future is going to be both green and profitable.

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Efficiency profitable for energy-independent Denmark

Thomas Friedman’s OpEd on Sunday describes how Denmark has achieved energy independence, and illustrates the numerous benefits for the country, including a very low unemployment rate and a large new export market.

When the 1973 oil shock hit, Denmark got 99 percent of its energy from the Middle East. Now they get zero. The country has combined massive energy efficiency programs, such as using waste heat from power plants to heat homes (known as “cogeneration”), with alternative energy sources like windmills (20% of their energy comes from the wind now), effective use of their own petroleum resources in the North Sea, and incentives for lowering energy use via high taxes on gasoline.

As a result, Danes enjoy one of the highest standards of living in the world, an extremely low unemployment rate, and a healthy export sector in alternative energy products.

Because it was smart taxes and incentives that spurred Danish energy companies to innovate, Ditlev Engel, the president of Vestas — Denmark’s and the world’s biggest wind turbine company — told me that he simply can’t understand how the U.S. Congress could have just failed to extend the production tax credits for wind development in America.

Engel suggests why this might concern us here in the United States.

“We’ve had 35 new competitors coming out of China in the last 18 months, and not one out of the U.S.”

If Denmark has been able to achieve 100% energy independence, at net benefit to their society economically, what does that say about America’s chances? Denmark has some advantages – it’s much smaller than the U.S., it has new oilfields in the North Sea – but we have advantages as well – our Southwest is much better for solar than anywhere in Denmark, we have whole states available for wind power, we have comparatively high rates of energy inefficiency that represent massive “negawatts.” Amory Lovins of Rocky Mountain Institute has outlined a set of steps for getting the U.S. off oil by 2025 – Winning The Oil End Game – that provides one possible, well-researched scenario for a profitable transition.

In the 35 years since the ’73 oil shock, Denmark has accomplished something remarkable. Now we in the U.S. need to set ourselves a similar goal. Using new technologies, such as the fuel cell breakthroughs I mentioned last week (here and here), we should be able to get there a lot faster than 35 years.

Clean and renewable energy also profitable for individuals who want jobs

A report from Worldwatch Institute details the way that traditional high carbon industries, such as coal, are shedding jobs while renewable energy and energy efficiency industries are adding jobs.

An estimated 2.3 million people worldwide currently work either directly in renewables or indirectly in supplier industries. The solar thermal industry employs at least 624,000 people, the wind power industry 300,000, and the solar PV industry 170,000. More than 1 million people work in the biomass and biofuels sector, while small-scale hydropower employs 39,000 individuals and geothermal employs 25,000.

It’s not just those people and organizations applying clean and renewable energy who are profiting, but also those doing the work.