How America Could Get Rich by Going Green

China is Cashing in its Emerging Energy Sector - What Solutions Will Help the U.S. Catch Up?

(CBS)  In our "Where America Stands" series, CBS News is looking at a broad spectrum of issues facing the country in the new decade.

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CBS News correspondent Celia Hatton reports wind turbines that can be seen slicing the sky above rural Minnesota were manufactured more than 6,000 miles away by a Chinese company. They're helping to power the nearby town of Pipestone.

"The wind is blowing nearly all the time," said Pipestone resident Elmer Stoltenberg. "We should take advantage of that."

In New Jersey, one Rutgers University campus gets 10 percent of its energy from 7,000 solar panels also made by a Chinese company.

China has a dirty reputation as the world's factory, but its emerging green energy sector is threatening to leave the United States in its dust.

The overall environmental report card is not pretty for either country. China is the world's top producer of greenhouse gases. The United States is a close second, followed by Russia, India and Japan.

China burns mountains of coal -- the dirtiest form of energy -- for 70 percent of its power. The nation consumes 2-and-a-half billion tons each year. Twenty-three percent of America's energy also comes from coal, using 1.2 billion tons annually.

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The U.S. population is less than a quarter of the size of China's, but Americans consume almost 6 times more energy per person than the Chinese -- though that's changing.

China also guzzles almost 8 million barrels of oil daily, or 8 percent of the world’s total, while Americans burn through 19-and-a-half million barrels, or 21 percent.

America’s oil use has been declining since 2007, while China’s getting thirstier. Oil consumption there is rising 5 percent a year.

Modern lifestyles are also on the rise in China, demanding vast amounts of electricity. That's why Chinese authorities are hungry for renewable energy to keep China's people satisfied and the economy humming.

CBS Reports: Where America Stands

Chinese leaders are investing heavily in green sectors like wind and solar, and that's where experts say China scores an "A."

In his State of the Union address this year, President Barack Obama said, "The nation that leads the clean energy economy will be the nation that leads the global economy. And America must be that nation."

The Problem:
Like it or not, China's the country cashing in on the green revolution.

That's a problem for America, according to Kenneth Lieberthal, a China expert at the Brookings Institution in Washington, D.C.

"We're going to have to end up using those technologies on a very large scale," Lieberthal said. "The question is whether we are producing them - or whether we have to end up buying them from the Chinese or others because we didn't get our act together."

Extended Interview with Peggy Liu

China has become the number one exporter of solar panels, supplying 29 percent of the world's $13.7 billion market, while the U.S. trails at 6 percent.

Chinese manufacturers also dominate the market in eco-products: from electric bikes and solar hot water heaters to mass-produced electric cars. In a few years, China's also expected to become the top exporter of wind turbines, and a major user of them too. There are more than 12,000 wind turbines stretching across China.

China’s turbines generate just over 12,000 megawatts of energy, vs. more than 25,000 megawatts in America. But it's catching up fast: its wind capacity has doubled annually since 2002.

Green Energy is the 21st Century

All this activity is putting food on the table for workers like 37-year-old Wang Meiqiu. Her hometown, the city of Baoding in China's central Hebei province, was once a decaying factory zone. But, with major state backing, it's being reborn into an unlikely eco-hub boasting 29,000 new jobs, including one for Wang.

"This is solving our unemployment problem," she said.

The U.S. faces a huge disadvantage in situations like this. The average factory worker in China costs a company 81 cents an hour to employ, compared to an average of $29.98 an hour for a worker in the United States. Even after taking China’s low cost of living into account, it’s a difference America can’t match.

The disparity brings down China’s prices. Chinese wind turbines, for instance, are often smaller and lower in quality than those made in other countries, but on average they cost 30 percent less.

Tim and Alana Nelson sell eco-products online from Washington state. They say competition from China has encouraged all solar panel companies to drop their prices - while quality’s improved.

Fire Mountain Solar

"You can put a Chinese panel next to an American one and unless you see the label, you can't tell the difference," Alana said.

China's also shepherding new research: cutting-edge Chinese technology traps the carbon dioxide released when burning coal. Costing $30 per ton of captured carbon, it’s cheaper than similar American and European technology costing $40-80 a ton.

The Solution:
So, what solution will allow the United States to catch up to China?

Many say in the short-term, America needs to encourage joint ventures with China, bringing renewable energy costs down for everyone.

In the long-term, experts say U.S. government polices should build on America's strengths: technological innovation and highly efficient manufacturing to compete with China’s unbeatable wages.

Ken Ames is the CEO of SeeSmart. His Vista, Calif., company makes cutting-edge LED light bulbs in Shenzhen, China. Ames says he'd relocate all his production stateside if he could break through Washington's red tape.

"There's going to have to be grants available - readily available - for companies like us that are going to bring the jobs, bring the technology," Ames said.

Analysts say the Obama administration is committed to clean energy, investing $80 billion in stimulus funding in hopes of fostering $150 billion in new projects. However, many argue the U.S. lacks Beijing's unified political will.

New political initiatives, coupled with old-fashioned American ingenuity, could help the U.S. embrace what Chinese entrepreneurs already know:

It’s possible to get rich by going green. A move that just might make the planet healthier too.


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[douxs]

Let's borrow more money from China, our national debt is over 12 trillion dollars. After health care kicks in, your guess is as good as mine.

Dear CBS News,

China will be our clean energy capacity maker because, evidentally, their companies build from the ground up and don't use as many middlemen. The United States will fail because we have to all try to get rich on many different levels, the reason why proven unlimited wind and (even more unlimited) solar capacity cost so much. Capitalism might be able to afford clean energy automation to just the factory worker, the delivery person and the installer, the rest of them, such as grid operators, banks, and other middlemen, need to take a very serious pay cut (since they are already making "bank"), kinda like a forced mandate. This is the only way automated factories can get below the $1/watt level needed to adjust for low capacity factors, and to be able to afford the $50/kW molten salt heat storage (CSP tower).

The recent stimulus money given to utility battery research should have such strings attached as the target $250/kWh is waaay tooo much for such a large scale energy storage system needed to avert just 50% of CO2 emissions.

If China becomes "our clean energy robot", at least we will still have millions of localized install jobs, therefore, WE NEED TO, outlaw NIMBYism.

Also, we need to ditch the trivial enviro laws that send all clean energy jobs into the coal pit, seriously `~'

Robert Bernal

[U_S_Drug_Addict]

the U.S.A. has blown an opportunity of epic proportions.

[Designtc]

What will help the U.S. catch-up? It won't happen unless some things change. Our President said our future is in renewable energy. How do we think this is going to be any different than any other industry? Why won't jobs created in this industry be outsourced to other countries? It's cheaper to purchase from another country than to make it in the states. And why is that, maybe because businesses in the US are required to abide by certain standard, minimum wage, safety and polution standard, etc.. Do we require that from the business we are importing from?

[AnnonymoussCrane]

Do I read this correctly? You would take away safety standards? Pollution standards? Minimum wages? Are you suggesting we require other companies to accept our standards, or are you suggesting we get rid of the standards? I'd appreciate some clarifications on those points.

I, frankly, think that the only way to solve the problems is to force other nations to pay tariffs, or accept our standards of operation. I don't think we should force Chinese companies to accept our standards, as that could create an incident with the controlling Chinese government. Rather, I would tax the ones that don't, to allow those that do compete more effectively.

[karagmile]

Population growth is out of control, & the green zealots' solutuion is reducing standards of living. Get a clue! Rising standards of living is THE ONLY thing proven to reduce population growth. This is why the greens' god, Malthus, was wrong: he saw the growth in population, but couldn't see rising standards of living would reduce it, because it was happening around him. (With over 200 yrs of experience since then, what is the greens' excuse?) If you REALLY want to control population, support solar power satellites & ocean thermal conversion!! No pollution, transmission of power anywhere in the world; or, access in tropical waters by the poorest countries in the world (Nigeria, Ethiopia, Bangladesh...) Or, you can go "green" & end up with the whole world looking like Africa: war, plague, famine, & genocide, exactly as Malthus predicted...

[porcine_aviator]

Wrong on all premises, except for population growth.

There is NO reduction in standard of living if you adopt green technology. I'd argue the opposite: I'd much rather zip to work at 200 miles an hour in a maglev train than spent a hour in a commute that averages 20 mph. I'd rather pay 20-30% more for electricity if it means my asthma is improved thanks to reduced powerplant and vehicle emissions.

This whole notion of green=poverty is only in the minds of the totally uninformed.

[AnnonymoussCrane]

I agree with porcine_aviator.
The problem with any argument in which Green = Poverty is this:

Green = Localized jobs = Employment which cannot be shipped overseas Green = Utilizing local resources = Paying our people, not other people
Green = Wasting less = Greater abundance of goods

On the sheer economics side of things, producing everything your country needs, with a little left over to sell to developing nations, is a goal whose worth is proven by China. The green movement, through sustainability, aims to use resources that we have, to avoid paying foreigners. If you do not believe that buying Arab oil is bad, read about how the Taliban madrassas, or religious schools, get their start. Many oil barons are part of the Wahhabi sect of Islam. Most madrassas are Wahhabi funded. Most Taliban operatives were recruited from madrassas. In between your pump and those terrorists, much good is done. I have no problems with trading with Arabs, Muslims, or people of the Wahhabi sect of Islam. But by the end, oil money can be used to fund our enemies. How much longer is that sustainable? Not long in my book.

I think that whatever money we stop spending in wars could easily pay for the costs of green. Whatever money we stop giving to already successful people will also pay for this. Whatever money we earn by getting jobs will pay for green. The future is not one of Malthus' making. It is one of our own making.

[barbaram99]

just how can we go green when the issues are in plain sight..Years ago we made what we used..We made them. I member them days..Another problem is there are too many people..The young want to have baby after baby I am childless. The planet is our home..We have not done a very good job at caring for it. People have to have 3 or 4 cars. I have none. Everything we use take oil..That is a fact..How do we as a Nation move from using alot of oil..The gov uses the most both state and fed does. The gov saids go green..The gov needs to realise it needs practise its words..The poor are the hardest hit in this..It is also a fact that green items are more costly. I use a Canadian made white cane..The reason is American made ones are junk..That is the truth. I have used the white cane for years. America used to make things that lasted. Warfare is not green nor is it good for the planet. Today's cars are dirty. People ***** about the factories being dirty and they are. What about the plants that use nucular fuel..That is not green..They bury the spent fuel and that is leaking in the ground..There are people that don't want to see wind farms from their windows..I can't see them anyway..The gov needs to be the first to go green as it is holding the money to fight useless wars..

[tsigili]

Just read that green housing costs more than it is appraised for, making such housing too expensive to finance easily. There is a major stumbling block, if I ever heard one.

Besides, truth is, all the "green" efforts being made, will be outstripped by human population growth, in just one year. We actually only have about 40 yrs. to reverse our impact on the planet, before we cross the point of no return, in saving the planet....and of course, ourselves....in the process.

Until the world starts to actively reduce population growth, which is currently exploding, world-wide, none of the other stuff we are doing will matter at all. The world population is projected to increase 50% in the next 40 yrs. That simply is NOT sustainable.

[frankie2fing]

Please file this article under 'DUH!'

Dear Republicans:

We need to make things. For our economy, for our strength, for our children. A exporting country is a wealthy country. WE ALL PROFIT, not just you few. But don't worry, Alito, Roberts and Thomas will protect your corporatist interest and destroy the country. Then you and your families can move to Dubia, which is where you want to be anyways. WAKE UP AMERICA!

[AnnonymoussCrane]

Dear frankie2fing:
I myself am no Republican. Rather, I am a radical moderate. I agree with your view that exports = wealth, and that we must not give in to corporatocracy, or any other corporate interest. Corporatocracy has become rampant, especially when it comes to the food industry (for more info, see the movie 'Food, Inc.') This certainly does not mean, however, that we must eliminate corporations, especially not if government is the alternative. All power corrupts. Governmental power may often require the people's consent, but that makes it no less dangerous. To me, it seems that the best solution is either corporate democracy (having workers approve raises, expansion, etc.), breaking large corporations into smaller ones, or both.
Although both my parents have a liberal lean, my mother's relatives tend to be conservative, and each one of these persons is an intelligent, successful-but-not-rich individual. One is a trucker; one is a restaurant manager; one edits a monster magazine. America was built on the backs of corporations. It can continue to be so if we break the cycle of power and return authority to the people.

[wjksea]

sjc_1 March 10, 2010 6:58 AM EST
Reagan was the one that took away the tax breaks for wind. Reagan was the one that took down the solar panels on the White House. Reagan was the one that escorted tankers out of the Persian Gulf with military war ships.
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The current neo con far right wing republicans will not talk about Ike Eisenhower and how during the 1950s he strongly defended a tax on income over 3 million at 90%. There are people in positions of power who are taking far far in excess of what their worth is to humanity and society because of the pyramid scheme the politics of this country is running.

[pjk12354]

Once upon a time............the US was in a league of their own when it came to cutting edge technology......and during that time our economy thrived.

Then the politicians and multi-national companies took over. We decided it was better to sit back and enjoy our cushiness and forget what got us to this level of apathy.

This is also what the Roman Empire did. Is history repeating itself yet again?

The US can once again lead the world. It just can't do it with everyone parked on their couch, watching HGTV on their chinese TV's.

[wjksea]

Concentrated wealth, Corporate monopolies, Wall Street and their grip on the government that was intended to represent the citizens of the United States. Germany in the 1800s was divided into a little over 200 small kingdoms run by petty despots who had little concern beyond the protection of their wealth and power which was defined largely by their possession of land. The bullies have been propagandizing for years through our current downturn that why would anyone wish to "tax" success. It's time for the sake of survival as a free society, a second look is taken at what defines civilization and the distribution of individual wealth. The concentration of wealth is actually making the United States less free for the majority of its citizens.