Skip to content

Green Company loses subsidies, cuts jobs

January 15, 2012

Here’s another example that If something is not financially sustainable, it’s not environmentally sustainable.

The N.Y. Times reports that a Vestas, a wind turbine company, is cutting 2,300 jobs. That’s about 10% of its labor force.

The article reports that it was a result of “cash-strapped governments” needing to cut subsidies for alternative energy. The government couldn’t sustain the subsidies, so the jobs ran out. 

And the trend might continue: “[Vestas] also warned that it could lay off a further 1,600 employees at factories in the United States if an important subsidy for the wind sector, known as a production tax credit, was pared back at the end of this year.”

This is just a reminder that if a government is going to have a clean energy industry on life support with subsidies, it had better make sure the rest of the economy is in healthy shape to support those subsidies. Governments should not villainize the economic sectors that are subsidizing their green energy efforts.

About these ads

From → fundamentals, jobs

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

%d bloggers like this: