OneWorld.net (U.S.)

NEW YORK, Sep 11 (OneWorld) - Increased economic investment in clean energy sources could help revive the U.S. economy and create hundreds of thousands of new jobs across the nation, according to a new study released this week.

Wind power would play a big role in the Green Recovery plan. © Auntie K (Flickr)"By investing $100 billion in the green economy, we can create 2 million good jobs in the next two years," said John Podesta, president of the Center for American Progress (CAP), a Washington, DC-based think tank that sponsored the study.

The report, entitled, "Green Recovery - A Program to Create Good Jobs and Start Building a Low Carbon Economy," shows that this year alone more than half a million Americans have lost their jobs due to the lingering energy crisis and economic downturn.

"Our economy is in trouble," said Podesta. "Falling home prices, foreclosures, bank failures, a weaker dollar, rising prices for gas, food, and steel, and layoffs in the banking, construction, and manufacturing sectors are all indicators of serious economic strain."

Bob Pollin and his colleagues at the University of Massachusetts' Political Economy Research Institute who prepared the study for CAP, say there is strong evidence that the current economic crisis will not be over very soon.

The study indicates the economic decline will continue for at least one more year, regardless of whether Washington embarks on the path that demands more investment in green energy sources or continues its current policy of heavy dependence on oil.

However, according to the study's authors, the economic situation could be dramatically improved if the next government embraces a new and innovative energy policy requiring heavy investment in green technologies and their uses.

If implemented, the Green Recovery plan would create hundreds of thousands of jobs for construction workers, many of whom have been out of work for over a year as a result of the current economic crisis.

The study points out that construction employment has fallen from 8 million to 7.2 million jobs over the past two years due to the housing bubble collapse, and it is likely that many other construction workers will find themselves in a similar situation in the coming months. The study's authors believe the Green Recovery program can, at a minimum, bring back those lost 800,000 construction jobs.

The Green Recovery plan recommends retrofitting buildings to increase energy efficiency, expanding mass transit and freight rail, constructing smart electrical grid transmission systems, and increased use of wind power, solar power, and advanced biofuels.

"[Our] program provides the infrastructure to jumpstart a comprehensive clean energy transformation," said Podesta, who thinks that the proposed $100-billion plan would create nearly four times more jobs than spending the same amount of money within the oil industry.

The study's findings suggest that the implementation of the plan would bring the unemployment rate down to around 4.4 percent from the current 5.7 percent.

Government Funding Would Only Be Short-Term

"Our report looked at investments that were funded through an increase in near-term government spending, which could ultimately be repaid by future carbon cap-and-trade revenues," said Podesta, referring to a government program that would limit the amount of carbon dioxide companies can emit and then allow those companies to buy and sell their carbon allowances in a free-market system.

Fitting a house with solar panels. © Co-op AmericaOf the $100 billion, Podesta's group recommended the U.S. government spend $50 billion to invest in renewable energy systems and provide tax credits to help private businesses and homeowners retrofit their buildings to make use of renewable energy technologies.

Another $46 billion in direct government spending would support public building retrofits and the expansion of mass transit, freight rail, and smart electrical grid systems. The final $4 billion would take the form of federal loan guarantees, which would underwrite private credit that would be extended to finance building retrofits and investments in renewable energy.

Steel Workers Agree

Environmental groups and labor rights activists welcomed the Green Recovery plan and said they hoped the next administration in Washington would pursue polices that promote green business.

"Environmental issues have to be the cornerstone of any future trade and labor standards," said Leo Gerard, president of the International Union of United Steel Workers, who thinks there is a great potential for new jobs in construction and transport.

However, that depends on the what actions the next president and Congress take. "[They] can pledge to repay the Treasury the cost of the green infrastructure recovery program from cap-and-trade auction revenue," said Podesta.

"The plan increases public spending in the short term when a near-recession economy needs greater impetus to growth," Podesta added, "but it remains consistent with a fiscally responsible long-term plan to reduce the debt as a share of GDP."

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