'Green' project will grow local economy
PORTLAND, Ore. - An innovative project is underway in Portland that promises to create jobs, protect the environment, and save residents money, but some economists question whether it will really improve the economy.
Portland’s Clean Energy Works program was created with $1 million in recovery funds and it provides low-interest loans to help homeowners make their homes more energy-efficient.
Roberta Hunte got a loan as part of the program and showed off the work being done to her home to U.S. Sen. Jeff Merkley and members of the media. Her money is being used to seal leaks and ad insulation in her home with the aim of saving money on her utility bills.
“A lot of families will say, ‘I can’t possibly put double-pane windows in my house, they’re too expensive.’ Merkley says. “But they find out the energy savings will pay for the cost of a low-interest loan, then suddenly, it’s ‘Yes, I can!’”
It’s not just about saving money and reducing greenhouse emissions, however; fifty-five people, like Carmey Robertson, will get a family-wage job out of it.
“Today is actually my first day here,” she says. “It means everything to me.”
But Bob Whelan, a senior economist at ECONorthwest, has doubts the program will improve the economy.
“That’s actually a lot of jobs for the amount of money spent, but the problem with government spending money to create jobs is that they’re not printing the money. To get the money, they have to take it from the private sector,” he says.
He questions why the government is brokering scarce loans for homeowners instead of businesses.
“People aren’t prohibited from weatherizing their homes. They do it all the time. They don’t have to be bribed to do it, and if you have to bribe people to do it, you’re not coming out ahead as an economy as a whole,” Whelan says.
“The families save money. They have more money to spend on other things in the economy. It’s a win on many fronts,” Merkley says.
The city of Portland is also touting another benefit: It’s good public relations which could entice more green-thinking companies to the city.
“In terms of cycle, I think we are at the beginning of something good,” says Hunte.
Mayor Sam Adams says there are plans to expand the program and create 10,000 jobs, but Whelan says he doesn’t know how that’s possible since there are only 135,000 owner-occupied homes in Portland and one-third are new.
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