Renewable Growth
With the U.S. economy skating on increasingly thin ice and policymakers desperately looking for ways to
restore growth, consider the impact of two energy trends:
On one side of the ledger has been the soaring price of oil. Economists figure it has had the equivalent effect
of $150 billion tax hike.
On the other side of the ledger, there is the expansion of the renewable fuels industry. In 2006, it contributed $41.9 billion to the country’s gross economic output while supporting the creation of 160,231 jobs (including “green collar” manufacturing jobs), putting an extra $6.7 billion into the pockets of American consumers, and adding $5 billion in new tax revenue for federal, state and local governments. All of that will expand dramatically in coming years thanks to the recently expanded Renewable Fuels Standard.
If long-term economic growth and opportunity is the goal, it’s pretty obvious which horse to back.
Sources:
“Stimulus Unlikely to Counter Rise in Oil Prices,” by Steven Mufson, Washington Post, January 11, 2008.
“Contribution of the Ethanol Industry to the Economy of the United States,” LECG, LLC; February 2007.
