While the wind energy lobby successfully extended their Production Tax Credit for 2013, the myth that getting rid of this absurd provision would cost jobs has been thoroughly disproven. Dr. Charles W. Circhetti of the Pacific Economics Group has released a report debunking one of the wind industry’s opening arguments: that expiration or elimination of the wind PTC would cause enormous job loss. Of course, elimination of this tax provision would require an equivalent tax cut so the revenue cannot be used fund Obama’s Big Government agenda.
Dr. Circhetti’s report identifies several areas where the wind industry has grossly exaggerated the economic effects of a world absent the PTC. Specifically targeting a study by the Navigant Consulting Group, Dr. Charles Circhetti says that:
• Navigant erroneously calculated PTC-related job losses ignoring contrary federal government data, and instead used the wind industry’s self-serving, inflated forecasts for wind capacity.
• Navigant incorrectly applied the Jobs and Economic Development Impact (JEDI) economic model. Replicating Navigant’s work for five important wind states (California, Texas, Iowa, Illinois, and Pennsylvania) demonstrates that through this error alone, Navigant overstates potential job losses by at least 100%.
• Navigant also incorrectly applied the Impact Analysis For Planning (IMPLAN) economic model, using questionable multipliers to add indirect and induced jobs, which further overstates potential job losses by at least another 72%.
He concludes that, “Navigant’s fatally flawed Report on the impact of the wind PTC expiration is based on self-serving industry interviews and unsupported wind capacity forecasts that have no credibility.” That sounds about right.