Sunday, March 14, 2010

The Big Wind-Power Cover-Up

Scandal: Spain exposed the boondoggle of wind power in 2009, discrediting an idea touted by the Obama administration. In response, U.S. officials banded with trade lobbyists to hide the facts.

It was a cold day at the Energy Department when researchers at King Juan Carlos University in Spain released a study showing that every "green job" created by the wind industry killed off 4.27 other jobs elsewhere in the Spanish economy.

Research director Gabriel Calzada Alvarez didn't object to wind power itself, but found that when a government artificially props up this industry with subsidies, higher electrical costs (31%), tax hikes (5%) and government debt follow. Fact is, these subsidies have the same "Cuisinart" effect on jobs as wind-generating propeller blades have on birds. Every green job costs $800,000 to create and 90% of them are temporary, he found.

Alvarez made no bones about the lessons of Spain for the Obama administration, which has big plans for "green jobs." His report warned of "considerable employment consequences" from "self-inflicted economic wounds." It forecast that the U.S. could lose 6.6 million jobs if it followed Spain, and it "should certainly expect its results to follow such a tendency."

A few months later, Danish researchers at the Center for Politiske Studier came to the same conclusion about subsidized wind power from their own country's experience.

"It is fair to assess that no wind energy to speak of would exist if it had to compete on market terms," their report said.

Straightforward experience, facts and the logical conclusions about policy failure in Europe should be de rigueur in science, and the reports coming from nations with long experience in wind power ought to be taken seriously.

But they had no place in the Obama administration, which had declared a "green jobs" agenda with $2.3 billion in tax credits to create 17,000 "high-quality green jobs."

"Building a robust clean energy sector is how we will create the jobs of the future," said President Obama.

So at the release of the reports — as well as publication of a critical column by the Washington Post's George Will — bureaucrats at the Energy Department went into defensive mode. Instead of doing like John Maynard Keynes (who changed his conclusions when the facts changed), they "huddled" with left-wing activists and trade lobbyists to hide the facts and smear the truth-tellers from Europe. They cooked up their own "memo" to discredit the foreign academics, effectively making the Energy Department a taxpayer-subsidized arm of green activists.

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