Can the environmental economy dodge a recession?

As economic indicators trend downward, the clean-tech sector is still looking up 3

As one key economic engine after another -- housing, finance, autos, retail -- sputters and stalls out, the fledgling eco-economy is purring right along, fueled in no small part by venture capital firms hungry for new opportunities in industries that promise outsized returns on their investments. In the first three quarters of 2007, VCs poured $2.6 billion into alternative energy and clean-tech firms, more money than they invested for the whole of 2006. The new year promises to be another record breaker.

And it's not only the Silicon Valley sharpies that are on the prowl: GE is promising to plow $6 billion into renewable energies by 2010, double what they were projecting only last year; Germany's Schott Solar is plunking down $100 million to build a plant in New Mexico, and predicts its investment will grow to $500 million when the facility is completed; and as 2007 drew to a close, Morgan Stanley made a $190 million investment in a clean-tech venture. Morgan, by the way, estimates the global renewable energy industry has a market cap in the neighborhood of $170 billion.

Certainly not all is rosy in the clean-tech patch. Tesla Motors and Imperium Renewables, once considered high fliers, have been dealt setbacks -- and as a result, have trimmed employee rolls. And alternative energy stocks are starting to look positively bubble-ish to some on Wall Street (the subject of a future post).

Recessions don't play favorites, for the most part. When U.S. consumers snap their pocketbooks shut, it creates a drag on the overall economy and everyone -- including governments that depend on tax receipts -- feels the pinch. The eco-economy probably won't be immune. But with the hundreds of millions of dollars streaming through the doors almost weekly, it's not a bad place -- and better than most -- to ride out the storm.

Mark Pawlosky is a freelance journalist based in Seattle. He is a former editor of Grist.org.

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  1. stopgreenpath Posted 1:47 am
    19 Jan 2008

    economic stimulus for green powersince the government is so eager to "stimulate the economy," why don't they get on the ball and offer some serious and meaningful programs for individuals who want to install residential solar/wind but who can't afford the capital outlay?
    San Fran and Berkeley have agreed to FINANCE panels for homes, with a modest payback attached to property taxes (so the cost of the entire system is tax deductible), germany has a 100% buy-back program where utilities have to buy back all the power generated at a very good price (not "net metering").  Feds have had a 35% tax CREDIT on the table for years, but haven't bothered pushing it through.  CA cities like LA squawking at international conferences about how visionary and green they are, are offering much lower rebates than the deep red cities of Florida.
    utilities already have massive payback guarantees, tax breaks, and other "stimulus" to get them to make the capital investments in power - even the ones that kill our wilderness - so let's get home-producers on the same footing.  the green economy will be front and center.

    the greenest energy is that which you needn't ever produce.

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  2. davis1900 Posted 4:28 pm
    03 Aug 2008

    recessionThe rising cost of food and fuel, and the inflation they could spark may prompt the authorities to maintain the interest rates. The rates may be at the current level. I don't think this will help our economy, and help people to pay their bills.
    ========

    davis

    NEW, NEW, NEW

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  3. Lisa P Posted 4:17 pm
    08 Dec 2008

    It's getting worst!This will probably what will happen. So if you experience a temporary shortfall of cash, then a payday loan may be what you need to get out of it. During a recession, like the one we're in, a lot more people are going to need them, and it is a good thing that they are there if you need one. However, some people are troubled by terminology like "recession" or "depression." What is the difference between the two? Well, in plain and simple terms, a recession is where the American economy, which is measured by quarters, has three or more quarters of a year, or every three months, where the total of things made here, or productive output, is less than it was in the previous three months, or quarter. So if 9 months out of a year has less production than the previous 9 months, then the economy has receded, and is therefore in a recession. A Depression is a long-term recession that results in higher levels of unemployment, and low levels of production, income, and also trade and investment. In short, one is bad, but the other is even worse. During a recession you have to take care and be responsible with your finances, but don't be afraid of a payday loan if you need one. For more info on http://personalmoneystore.com/moneyblog/what-are-payday-l ... Payday Loans, click the link.

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