Green Jobs

Cost Per Job Generated by Green Car Federal Loan Guarantees

|

Fisker failure
Credit: Boykov | Dreamstime.com

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
Credit: Mercatus

Go here to see De Rugy's full analysis.

NEXT: AZ Escalates Battle Against Synthetic Drug Market

Editor's Note: We invite comments and request that they be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of Reason.com or Reason Foundation. We reserve the right to delete any comment for any reason at any time. Report abuses.

  1. Since politicians are so hellbent on giving gifts to their cronies using our money, I wish they would simply give gifts to their cronies using our money. It would be both more honest and substantially cheaper.

  2. Weird. It’s almost like the multipliers work in reverse.

  3. I will gladly work on some green bullshit for $200K even. I’m saving the taxpayers money!

    Failing that, I guess I’ll go back to raping the earth by helping produce hydrocarbons from under the sea.

    1. “Nissan is a surprise.”

      Maybe not. They’ve been pretty profitable, so they know how to make money, whether it’s from customers or crooked politicos.

      1. They started getting profitable again after the Renault merger, so take that data point for what it’s worth.

  4. “Not only are federal loan guarantees to electric and hybrid car manufacturers supposed to save the climate, they also allegedly create good green jobs. ”

    Here is a thought; They knew full well that all the green shit was going to fail and used it as a pretense to funnel tax money to their buddies. How much money did the executives at the companies receiving ATVM loans make? I am betting they came out in the black after the companies folded. Same for the solar panel companies. There are probably more. It would also be interesting to find out which party those people support.

Please to post comments

Comments are closed.