Clean Energy Job "Funding Cliff"

Successful job creation has resulted from the passing of the American Recovery and Reinvestment Act (ARRA), or "The Recovery Act". But it has especially benefited the clean energy sector of the economy. The $90 billion spent toward this sector was done with the intention to provide for “government investment and tax incentives to lay the foundation for the clean energy economy of the future." And with the new fourth quarterly report made by Vice President Joe Biden and the Council of Economic Advisors (CEA) Chair Christina Romer onWednesday (7/14), there is positive hope that more creation will continue.

This chart below is the estimated jobs saved or created because of the ARRA. But take notice of the numbers for 2012. The more drastic decrease is because 2012 is when the ARRA's funding is set to expire. This is where the "funding cliff" will be a worry for this sector of the economy. A forseeable solution would be to extend the funding, but that may be easier said than done.

By 2012 I hope that there would be more evidence of U.S. benefits from clean energy technologies and that it would be apparent enough to cross party lines. Unfortunately, there is always partisanship in Congress for the sake of partisanship. The lack of a comprehensive energy policy will only contribute to the possibility that the U.S. will drive off this cliff. So do you think in 2012 that the U.S. will be the star in "Cliffhanger" or "Thelma and Louise"?

Estimates of Jobs Saved or Created by the ARRA of 2009 at Different Times

As of the 4th Quarter of Estimated Jobs

2009 1.5 million

2010 3.5 million

2011 1.7 million

2012 0.3 million

Read more on this here.