|Green Economy Will Rebound Faster From Financial Turmoil |
Written by Reenita Malhotra
The Inspired Economist
October 5, 2008
The green economy shows signs of rebounding faster than others shaken by the
global financial turmoil. There are several indicators pointing to the fact.
Government Guaranteed Revenues for Large Renewable Energy Players
Unlike other industries, renewable energy has government-guaranteed revenues.
However it is likely that as the credit crunch plays out, the re-bounders will
be big utilities who are not reliant on banks for short term loans rather than
start-ups who do.
“Even if utilities do have to borrow, they can do so cheaply as
government-regulated businesses with guaranteed rates of return which can pass
on costs to consumers”, said analyst Pavel Mulchanov at Raymond James &
Associates in Houston who hints that the larger wind and solar companies might
be recession proof even though their stocks have been yo-yo-ing.
Tax Credits For Wind and Solar Energy Industries
The highly contentious $700 billion bailout was finally signed into law on
October 3rd after a series of revisions. Known officially as the Emergency
Economic Stabilization Act of 2008, it includes production and investment tax
credits for the wind and solar energy industries. About 60,000 Americans are
already employed by the solar energy industry, the extension of tax credits will
further help to create thousands of jobs while providing clean, affordable,
carbon-free energy to citizens. Clearly a win-win situation.
4.2 Million Green Jobs by 2038
According to a study released last week for the U.S. Conference of Mayors, the
U.S. economy now has about 750,000 green jobs that include renewable energy or
green engineering, legal or research support. As the economy recovers and
focuses on developing energy efficiency and alternative fuels, it can generate
4.2 million new “green” jobs in the next 30 years.
Non Green Companies Weigh In: Google Unveils a Plan For Cleaner Energy
Google Inc. has decided to fund green technology and leverage its brand power to
lobby for policy change. The world famous web search company plans to wean the
United States off burning coal and oil for power by 2030, and cut oil use for
cars by 40 percent. That will cost trillions of dollars, but Google believes it
should ultimately save money.
What will the U.S. Economy look like in the foreseeable future? Are we entering
a green revolution? Did we actually manage to achieve more than a 0 billion
bailout for the environment over the long term?