Report: Obama Should Spend $100B on Green Stimulus

Now that the credit crunch has blown a hole in investment and consumer spending and the housing market has crashed, President-elect Barack Obama will be looking to stimulate the economy through hundreds of billions of dollars in spending. A report from UBS Investment Research and the Center for American Progress lays out a plan for how Obama could spend $350 billion in a year, and the stunning part is this: The groups suggest that over $100 billion of that should be spent on green job and infrastructure investments (breakdown below).

That green stimulus spending will also help a variety of stocks, say analysts with UBS Investment Research. Analyst Jason Feldman says spending on building out the power grid and making it smarter will benefit smart meter company Itron, as well as electrical transmission and distribution builder Cooper Industries — and of course GE with its Ecomagination initiative. Analyst Stephen Chin says First Solar, Applied Materials and SunPower will benefit from a solar infrastructure build out.

Wondering what other sectors could see some of the suggested green stimulus plan? Here’s the breakdown:

  • Green school construction and renovation, $7.3 billion
  • Greening affordable housing, $5.0 billion
  • Green job creation, $100.0 billion

That green job creation portion will include (but is only a portion of the spending):

  • The Weatherization Assistance Program, $0.9 billion
  • The Federal Energy Management Program, $1.3 billion
  • Refundable residential energy efficiency tax credits, $5.0 billion
  • Solar roofs on federal buildings, $3.5 billion
  • Smart grid federal matching funds, $1.3 billion
  • Building retrofits, $10.0 billion
  • Energy efficiency and conservation block grants, $5.0 billion
  • “Cash for Clunkers” rebates for older cars, $2.5 billion
  • Electric transmission grid, $10.0 billion
  • Advanced technology vehicle manufacturing and retooling, $7.5 billion
  • Replacing aging buses and acquiring rail cars, $4.0 billion
  • Local transit infrastructure, $8.0 billion
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