Economic Impacts of the Promotion of Renewable Energies

The German Experience

The RWI (Rheinisch-Westfälisches Institut für Wirtschaftsforschung) has just published an eye-opener on the real costs of renewables in Germany. The RWI does not condemn or ridicule renewables, but stretches that the full costs are, especially for photovoltaics (PV),  extremely high: the PV costs for CO2 abatement are estimated at a staggering 1035 US$ per ton. These breathtaking costs are the result of the overly generous feed-in tariffs (about 40-50 Euro-Cents guaranteed for 20 years). The PV subsidization costs per worker are  US$ 240000, much higher than the average German wages.
A second myth being destroyed is the magnitude of green jobs created: the balance is negative. More traditional jobs are destroyed than green ones are created. A similar conclusion had been found in Spain.
The report concludes “… we would regard the country’s experience as a cautionary tale of  massively expensive environmental and energy policy that is devoid of economic and environmental benefits.”

Click here for the English and German versions of the report.

Hearing on Climate Change at Luxembourg

The Commission for Sustainable Development holds a hearing on Climate Change the 21th October 2009. Only organisations (not private persons) from Luxembourg are allowed to give their opinion in a public hearing; these organisations are for instance Greenpeace, Mouvement Ecologique, Klimabündnis etc…. So expect to hear the litany. I asked to be allowed to send as a scientist my private position to the commission, and this has been gracefully accepted by the president, former Minister Fernand Boden (and currently a MOP) . The text in French of my position is here.

Marcel Severijnen, former head of the Environmental Monitoring Department of the Province of Limburg, NL, sent me these remarks: I agree 100%, and thank M.S. for his comments and supplementary information.