A new report, "Defining, Measuring, and Predicting Green Jobs," by University of Texas economist Gurcan Gulen, issued by the Copenhagen Consensus Center, takes apart many studies predicting that policies mandating alternative energy production, energy efficiency, and conservation will create a boom in employment.
First, Gulen notes that many such studies fail to define clearly what they mean by green jobs. He points out that many pro-green jobs studies do not distinguish temporary construction jobs from more permanent operation jobs. Many studies also assume that green jobs will pay more than jobs in conventional energy production. But why would a construction job at a wind farm pay more than one at a conventional power plant?
Even more disturbingly, many green job studies have no analyses of job losses. Clean energy costs more than conventional energy, which means consumers and businesses will have less income with which to buy and invest. This reduces their consumption of other goods and services, resulting in job losses in those sectors—one of Bastiat's "unseen" effects. In addition, many studies simultaneously count on protectionist policies to exclude clean energy imports while assuming that domestic companies will be freely exporting to other countries.
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