It is true that if the government levies heavy taxes on carbon dioxide emissions and then provides grants, subsidies, and tax credits to renewable resource development, it will create more jobs in such fields. However, what you will not do is create a net gain in jobs.
As Josh Barro from the Manhattan Institute points out, as green jobs are created, layoffs in carbon-intensive fields will simultaneously occur, resulting in a net loss of jobs. The Brookings Institute predicts Cap and Trade will reduce employment in coal-related industries by over 40% and crude oil-related industries by 35%.
Barro is correct when he says “But whatever it is, Cap and Trade is not a jobs program… true economic recovery will only come when the Administration realizes that regulations does not create jobs.”
For some more on the myths of “Green Jobs,” check our our PolicyPoints on Alternative Energy Mandates.