Getting windier

Virginia officials are lauding the U.S. Department of Energy's plan to spend more than $50 million to speed the development of wind farms as a clean way to generate new jobs in the state. Energy analysts, however, are skeptical and worry that green initiatives may cost more jobs than they create.

As part of the Obama administration's "Smart from the Start" program, intended to generate 80 percent of U.S. electricity from clean sources by 2035, key areas off the coast of Virginia and three other Atlantic states have been pegged to receive over $50 million in federal funds for the development of wind energy. Prime locations include a 165-square-mile site about 20 miles off the coast of Virginia Beach.

The government could issue leases for four new East Coast wind farms by year's end as part of a streamlined approval process designed to identify the nation's most promising areas for offshore wind energy.

"Virginia is uniquely positioned to lead the nation in the development of a reliable domestic offshore wind energy industry that produces affordable energy for our homes and businesses," Gov. Bob McDonnell announced last week, adding, "Commercially practicable and affordable offshore wind energy will bring economic growth and new jobs to the Commonwealth."

However, the exact number of new jobs created remains unclear, and many analysts question whether the creation of green jobs simply "shields" the loss of jobs in other sectors. One recent report conducted by senior energy economist Gürcan Gülen from the University of Texas at Austin, concludes that the term "green job" has become virtually useless.

"Pushing aggressively to increase the share of these technologies," the report said, "will cost large sums of money and will increase cost of energy to society, negatively impacting purchasing power, employment and GDP. One simply cannot wish these realities away."

Despite hopes that wind power will supply the world with cleaner energy, some environmentalists are voicing concerns that the industrial production of wind turbines may actually negate their positive effects.

One correspondent from the United Kingdom visited a site in China, where workers produce powerful magnets needed for the construction of wind turbines. He found a "vast lake of toxic, radioactive sludge" - the sewage left over once the magnets have been produced.

"The reality is that, as Britain flaunts its environmental credentials," the correspondent said in dailymail.co.uk, "…it is contributing to a vast manmade lake of poison in northern China. This is the deadly and sinister side of the massively profitable rare-earths industry that the 'green' companies profiting from the demand for wind turbines would prefer you knew nothing about."

China, which currently supplies the majority of rare earth minerals necessary for the construction of wind turbines, recently surpassed the United States in the development of wind energy and now accounts for 22 percent of the world's total wind power. With China slowly taking the lead in the development of green energy, pressure is beginning to build on the Obama administration to keep up with the rest of the world.

In his State of the Union address, President Barack Obama compared the competition between China and the U.S. to develop clean energy alternatives to the space race during the 1960s. "This is our generation's Sputnik moment," Obama said. "We'll invest in biomedical research, information technology, and especially clean energy technology - an investment that will strengthen our security, protect our planet, and create countless new jobs for our people."

The Associated Press contributed to this report.