Economic Impacts of the Promotion of Renewable Energies

The German Experience rwi_projekbericht

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.

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