Tag Archives: Electricity

Cap and trade will raise electricity prices and increase unemployment

Representative Michele Bachmann
Representative Michele Bachmann

Michele Bachmann has a post on her blog about a new study by a Spanish economist regarding the cost of green job initiatives.


A study directed by Dr. Gabriel Calzada, an economics professor at Juan Carlos University in Madrid, concluded that every “green job” created in Spain resulted in 2.2 other jobs being destroyed.

The study emphasized that only 10% of the “green jobs” created could be considered permanent – such as maintenance of renewable power systems. The remaining jobs consisted of temporary jobs in construction, fabrication and installation jobs; along with administrative positions, marketing, and engineering projects.

Spain has been providing subsidies to create green jobs, and this is viewed by some as a model for future US energy policy.

Bachmann continues:

“If U.S. subsidies to renewable producers achieve the same result — and President Obama has held Spain up as a model for how to subsidize renewables — the U.S. could lose 6.6 million to 11 million jobs while it creates three million largely temporary ‘green jobs.'”

Furthermore, Dr. Calzada stated that “the loss of jobs could be greater if you account for the amount of lost industry that moves out of the country due to higher energy prices.”

Thomas J. Pyle of the Institute for Energy Research adds:

“As this study makes clear, Spain has spent billions in taxpayer resources to subsidize renewable energy programs in an effort to jumpstart its ailing economy – and what they’ve gotten in return are fewer jobs, skyrocketing debt and some of the highest and most regressive energy prices in the developed world. Now, as U.S. policy-makers prepare to embark Americans upon a similar course, this report offers our first realistic glimpse into what we should expect in return for that unprecedented sacrifice of public resources and personal autonomy.”

The IER has a list of the key findings from the study in that post.

Ed Morrissey at Hot Air adds:

Why did the jobs disappear?  In part because of the higher capital confiscation of the government, and in part because the green policies pushed industry out of Spain. Actually, the study didn’t count jobs lost through “industrial relocation”, which in this case amounts to capital flight.  The largest stainless-steel producer in Spain directly linked its decision to move operations to South America to the higher energy costs imposed by the government.

In the US, we could see a massive flight, and not just in manufacturing.  High-tech industries that rely on cheap energy could be forced to find less expensive environments. Bloomberg’s economist notes that Microsoft and Google have already relocated their servers once to get cheaper energy.  The Internet is flexible enough to allow employers to go almost anywhere in the world to host their servers, and in this economy, there will be plenty of competition for them.

In a related post, Gateway Pundit notes that the cap and trade policies of the Democrats will also cause consumer electricity prices to soar.


Democrats know that their cap and trade energy policies will devastate the economy.

…Cap and trade policies would likely cost American families $700 to $1,400 dollars per family per year according to the video above. The Department of Energy estimated GDP losses would be between $444 billion and $1.308 trillion over the 21-year period. Cap and trade also could cost the US 4 million jobs. In Missouri and the Midwest where energy is “cheap” it would cause electricity rates to double.

And, it would likely do nothing to help with the make-believe global warming junk science.

And GP also links to this video showing what we can expect from the Democrats on this issue:

Further study

I posted a list a while back of the expected increases in electricity prices, broken down by state, here. More about the impact on consumers from John Boehner is here.

More about the rise in unemployment we can expect from green jobs initiatives is here. Info about Obama’s tax hikes on energy producers is here. Information about possible carbon tariffs is here.

Information about the recent Cato statement of 700 scientists who dissent from man-made global warming is here.

Projected increases in electricity prices under Obama’s cap-and-trade policy

Over at Michele Bachmann’s blog, I noticed that she has posted about the expected increase in electricity prices (per person) under Obama’s proposed cap-and-trade legislation. The numbers are provided by Ways and Means Ranking Member Dave Camp.

Here are a couple of the bigger increases:

  • Alabama $1,528.26
  • Indiana $1,627.46
  • Kentucky $1,798.23
  • Montana $1,717.63
  • North Dakota $4,350.56
  • West Virginia $3,972.29
  • Wyoming $7,249.54

Looks like the effect is to transfer wealth from pro-business red states to anti-business blue states. Redistribution of wealth. Equalization of outcomes. Welfare. After all, a lot of these blue states have been spending like drunken sailors, and will need to grab some money from their red-state neighbors, if they are to continue acting irresponsibly.

Here is an interesting quotation in Michele’s post, provided by the Director of the Congressional Budget Office, Dr. Douglas Elmendorf on the proposed cap-and-trade legislation:

At a Ways and Means hearing today, Congressman Camp questioned Congressional Budget Office Director Dr. Douglas Elmendorf  about the impact of this policy on consumers in other ways as well.  As Dr. Elmendorf said, “at any point in which we are putting a price on carbon emissions, that would be passed through to the cost that consumers face on energy products but also all other products that are made using fossil fuels….I don’t know if there are any goods that use no energy in their production.  It seems to me unlikely.”

I blogged here about the proposed tax hikes on oil companies, and here on the proposed cap-and-trade system and here on the proposed carbon tariffs Obama wants to impose on imported goods. And we’ve also seen that global warming is just a myth – useful crisis that leftists sell to the public in order to justify government control of the free market.