Wednesday, May 1, 2013

Cost Per Job Generated by Green Car Federal Loan Guarantees

Fisker failureCost Per Job Generated by Green Car Federal Loan Guarantees:
Not only are federal loan
guarantees to electric and hybrid car manufacturers supposed to
save the climate, they also allegedly create good green jobs.
Economist Veronique de Rugy, a fellow at the free market Mercatus
Institute and a frequent contributor to Reason, has parsed
the numbers and reports just how much the Department of Energy's
Advanced Technology Vehicles Manufacturing (ATVM) loan program each
green job in the automotive sector has cost taxpayers. The news is
not good.
De Rugy reports:
The DOE touted the ATVM loan program as a tool for boosting
America’s “clean energy economy” by adding nearly 38,700 jobs. Far
less attention was paid to how the loan commitments exposed
taxpayers to excessive risk, to the tune of about $217,028 per job
“created or saved.”
How was this dubious miracle achieved? De Rugy points out...
...the DOE reports
that the loan “converted” nearly 33,000 existing Ford jobs to green
manufacturing jobs. Also, it is worth noting that DOE still
attributes 2,000 jobs to Fisker, even though the company’s
workforce shrank to 50 following the latest round of firings.
The cost per job by loan is below. Taxpayers read the figures
and weep.
De Rugy Green Car Jobs
to see De Rugy's full analysis.