NEWS

Clean energy may hold the key to diversifying Michigan’s economy

11/21/2008

Dave Hornstein

For far too long, Michigan in general and the Detroit area in particular have depended too much on the auto industry. It’s a bad idea to put all your eggs in one basket, and Michigan has suffered as the Big Three have lost market share over the last 30 years, culminating in a bailout attempt to head off a possible collapse.

In the face of this gloomy scenario, it is more important than ever for Michigan to diversify its economy away from the automotive sector. Even if a federal bailout is approved and all the Big Three survive, they are unlikely to replace all the jobs they have lost.

The best opportunity for economic diversification in Michigan can be found in President-Elect Barack Obama’s New Energy for America Plan, a 10-year, $150 billion proposal to reduce dependence on foreign oil, implement energy efficiency and conservation practices, cap carbon dioxide emissions, and expand economic opportunities by developing and using clean and renewable energy sources, such as wind, solar and geothermal. This plan aims to improve national security by making the U.S. energy independent, reverse global warming with a reduced carbon footprint, and grow the economy by creating five million green collar jobs.

These jobs would include manufacturing wind towers and turbines, and solar panels; constructing a modern power grid; retrofitting buildings for energy efficiency; installing solar panels; and weatherizing homes. Michigan already has the manufacturing and technological expertise for these industries, and given prevailing wind conditions, it can also be a site for wind power generation. In September, Michigan joined a growing number of states in setting renewable energy standards for its utilities. With one of the highest unemployment rates in the nation, Gov. Jennifer Granholm has made investing in clean energy manufacturing a top priority.

When Obama takes office in January, the new energy plan will be among the major initiatives introduced during the first 100 days. Green collar jobs could be a major factor in getting the U.S. out of the current recession and Michigan away from its overdependence on the auto industry.