It’s not easy being green

kermit_logFrom a recent Reuters Report:

The Obama administration has high hopes that millions of “green” jobs will be created by investing billions of dollars in renewable energy, but a report on Tuesday warned not all those workers would earn good pay.

“Green jobs are not automatically good jobs,” according to the report commissioned by several U.S. labor and environmental groups, which looked at pay practices at renewable energy companies.

One of the things you’ve probably heard floating around with all the talk of ‘stimulus package’ and ‘green jobs’ is they are the answer to bringing high-paying jobs back into our economy. The Reuters article highlights that the manufacture of renewable energy technology will end up being ruled by global economic realities. If the manufacturing capability exists for it to be made in China–it will be– just like the toy you bought at Walmart. Capital continually searches for the cheapest source of labor. With oil prices unlikely to bounce back for a couple of years, transport costs from these labor sites won’t be a barrier for the next few years.

Warm Home Cool Planet sees this as a double edged sword. While the growth of the renewable energy industry is unlikely to lead to a revival of the US industrial base, overseas manufacture of products has made many consumer items affordable for middle class Americans. Remember how expensive HD TVs were before they became a staple in every American living room? If lower cost labor makes renewable technologies more affordable, America will still benefit in many ways. It will lead to lower energy bills, which frees up disposable income for many families. It should also be noted the marketing, distribution and installation of these products is not something that can be outsourced to another country.

One hopes that companies who do manufacture renewable energy products in China and other places insist on environmental standards far stricter than those currently imposed.

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