IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v72y2017icp117-127.html
   My bibliography  Save this article

Renewable energy sources in Italy: Sectorial intensity and effects on earnings

Author

Listed:
  • Raitano, Michele
  • Romano, Eleonora
  • Zoppoli, Pietro

Abstract

The literature on renewable energy sources (RES) does not provide a shared methodology to measure the sectorial intensity of production linked to RES. Furthermore, empirical evidence on the relationship between RES sectorial intensity and workers’ earnings is scant. The aim of this paper is to fill in these literature gaps providing, on the one hand, an original microdata-based methodology to measure the RES sectorial intensity, and, on the other hand, estimating, through panel data techniques, the relationship between RES sectorial intensity and earnings for a representative sample of Italian workers in the period 2002–2009. Focusing on the case of Italy in the first decade of the 21th century is very relevant given that in that period Italy promoted one of the most generous renewable support schemes worldwide. The main findings are the following: i) the RES sectorial intensity in Italy largely increased in 2008–2009; ii) on average, the RES sectorial intensity does not affect earnings levels; iii) remarkably, a clear skill-premium effect emerges when the RES sectorial intensity increases.

Suggested Citation

  • Raitano, Michele & Romano, Eleonora & Zoppoli, Pietro, 2017. "Renewable energy sources in Italy: Sectorial intensity and effects on earnings," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 117-127.
    • Handle: RePEc:eee:rensus:v:72:y:2017:i:c:p:117-127
    DOI: 10.1016/j.rser.2017.01.042
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032117300369
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2017.01.042?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Robert J R Elliott & Joanne K Lindley, 2014. "Green Jobs and Growth in the United States: Green Shoots or False Dawn?," Discussion Papers 14-09, Department of Economics, University of Birmingham.
    2. Robert C. Feenstra & Gordon H. Hanson, 1999. "The Impact of Outsourcing and High-Technology Capital on Wages: Estimates For the United States, 1979–1990," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 907-940.
    3. Blazejczak, Jürgen & Braun, Frauke G. & Edler, Dietmar & Schill, Wolf-Peter, 2014. "Economic effects of renewable energy expansion: A model-based analysis for Germany," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 1070-1080.
    4. Alexander Hijzen, 2007. "International Outsourcing, Technological Change, and Wage Inequality," Review of International Economics, Wiley Blackwell, vol. 15(1), pages 188-205, February.
    5. Cox, Michael & Peichl, Andreas & Pestel, Nico & Siegloch, Sebastian, 2014. "Labor demand effects of rising electricity prices: Evidence for Germany," Energy Policy, Elsevier, vol. 75(C), pages 266-277.
    6. W. Reed Walker, 2011. "Environmental Regulation and Labor Reallocation: Evidence from the Clean Air Act," American Economic Review, American Economic Association, vol. 101(3), pages 442-447, May.
    7. Olivier Deschenes, 2018. "Environmental regulations and labor markets," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-22, November.
    8. Simona Bigerna, Carlo Andrea Bollino and Paolo Polinori, 2016. "Renewable Energy and Market Power in the Italian Electricity Market," The Energy Journal, International Association for Energy Economics, vol. 0(Bollino-M).
    9. Lehr, Ulrike & Nitsch, Joachim & Kratzat, Marlene & Lutz, Christian & Edler, Dietmar, 2008. "Renewable energy and employment in Germany," Energy Policy, Elsevier, vol. 36(1), pages 108-117, January.
    10. Jean Château & Anne Saint-Martin & Thomas Manfredi, 2011. "Employment Impacts of Climate Change Mitigation Policies in OECD: A General-Equilibrium Perspective," OECD Environment Working Papers 32, OECD Publishing.
    11. Nico Pestel, 2019. "Employment effects of green energy policies," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-76, December.
    12. repec:iza:izawol:journl:y:2014:p:22 is not listed on IDEAS
    13. W. Reed Walker, 2013. "The Transitional Costs of Sectoral Reallocation: Evidence From the Clean Air Act and the Workforce," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(4), pages 1787-1835.
    14. Randy A. Becker & Ronald J. Shadbegian, 2008. "The Green Industry: An Examination of Environmental Products Manufacturing," NCEE Working Paper Series 200810, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Oct 2008.
    15. Helg, Rodolfo & Tajoli, Lucia, 2005. "Patterns of international fragmentation of production and the relative demand for labor," The North American Journal of Economics and Finance, Elsevier, vol. 16(2), pages 233-254, August.
    16. Friedhelm Pfeiffer & Klaus Rennings, 2001. "Employment impacts of cleaner production – evidence from a German study using case studies and surveys," Business Strategy and the Environment, Wiley Blackwell, vol. 10(3), pages 161-175, May.
    17. Clò, Stefano & Cataldi, Alessandra & Zoppoli, Pietro, 2015. "The merit-order effect in the Italian power market: The impact of solar and wind generation on national wholesale electricity prices," Energy Policy, Elsevier, vol. 77(C), pages 79-88.
    18. Lehr, Ulrike & Lutz, Christian & Edler, Dietmar, 2012. "Green jobs? Economic impacts of renewable energy in Germany," Energy Policy, Elsevier, vol. 47(C), pages 358-364.
    19. Acemoglu, Daron & Autor, David, 2011. "Skills, Tasks and Technologies: Implications for Employment and Earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 12, pages 1043-1171, Elsevier.
    20. Llera Sastresa, Eva & Usón, Alfonso Aranda & Bribián, Ignacio Zabalza & Scarpellini, Sabina, 2010. "Local impact of renewables on employment: Assessment methodology and case study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(2), pages 679-690, February.
    21. Bound, John & Johnson, George, 1992. "Changes in the Structure of Wages in the 1980's: An Evaluation of Alternative Explanations," American Economic Review, American Economic Association, vol. 82(3), pages 371-392, June.
    22. del Río, Pablo & Burguillo, Mercedes, 2008. "Assessing the impact of renewable energy deployment on local sustainability: Towards a theoretical framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(5), pages 1325-1344, June.
    23. Lambert, Rosebud Jasmine & Silva, Patrícia Pereira, 2012. "The challenges of determining the employment effects of renewable energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 4667-4674.
    24. Blanco, Maria Isabel & Rodrigues, Glória, 2009. "Direct employment in the wind energy sector: An EU study," Energy Policy, Elsevier, vol. 37(8), pages 2847-2857, August.
    25. Chiara Broccolini & Alessia Lo Turco & Andrea Presbitero & Stefano Staffolani, 2011. "Individual Earnings, International Outsourcing and Technological Change: Evidence from Italy," International Economic Journal, Taylor & Francis Journals, vol. 25(1), pages 29-46.
    26. Deschenes, Olivier, 2013. "Green Jobs," IZA Policy Papers 62, Institute of Labor Economics (IZA).
    27. Woo, C.K. & Horowitz, I. & Moore, J. & Pacheco, A., 2011. "The impact of wind generation on the electricity spot-market price level and variance: The Texas experience," Energy Policy, Elsevier, vol. 39(7), pages 3939-3944, July.
    28. Daron Acemoglu, 2002. "Technical Change, Inequality, and the Labor Market," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 7-72, March.
    29. Hillebrand, Bernhard & Buttermann, Hans Georg & Behringer, Jean Marc & Bleuel, Michaela, 2006. "The expansion of renewable energies and employment effects in Germany," Energy Policy, Elsevier, vol. 34(18), pages 3484-3494, December.
    30. Wei, Max & Patadia, Shana & Kammen, Daniel M., 2010. "Putting renewables and energy efficiency to work: How many jobs can the clean energy industry generate in the US?," Energy Policy, Elsevier, vol. 38(2), pages 919-931, February.
    31. Dillig, Marius & Jung, Manuel & Karl, Jürgen, 2016. "The impact of renewables on electricity prices in Germany – An estimation based on historic spot prices in the years 2011–2013," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 7-15.
    32. repec:iza:izawol:journl:y:2014:p:76 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michele Raitano & Eleonora Romano & Pietro Zoppoli, 2016. "The sectorial intensity of production of renewable energy sources in Italy:measurement and effects on earnings," Working Papers 1, Department of the Treasury, Ministry of the Economy and of Finance.
    2. Costantini, Valeria & Crespi, Francesco & Paglialunga, Elena, 2018. "The employment impact of private and public actions for energy efficiency: Evidence from European industries," Energy Policy, Elsevier, vol. 119(C), pages 250-267.
    3. Llera, E. & Scarpellini, S. & Aranda, A. & Zabalza, I., 2013. "Forecasting job creation from renewable energy deployment through a value-chain approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 262-271.
    4. Cameron, Lachlan & van der Zwaan, Bob, 2015. "Employment factors for wind and solar energy technologies: A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 160-172.
    5. Simas, Moana & Pacca, Sergio, 2014. "Assessing employment in renewable energy technologies: A case study for wind power in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 31(C), pages 83-90.
    6. Cartelle Barros, Juan José & Lara Coira, Manuel & de la Cruz López, María Pilar & del Caño Gochi, Alfredo, 2017. "Comparative analysis of direct employment generated by renewable and non-renewable power plants," Energy, Elsevier, vol. 139(C), pages 542-554.
    7. O'Sullivan, Marlene & Edler, Dietmar, 2020. "Gross Employment Effects in the Renewable Energy Industry in Germany : An Input–Output Analysis from 2000 to 2018," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 12(15).
    8. Blazejczak, Jürgen & Braun, Frauke G. & Edler, Dietmar & Schill, Wolf-Peter, 2014. "Economic effects of renewable energy expansion: A model-based analysis for Germany," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 1070-1080.
    9. Marlene O’Sullivan & Dietmar Edler, 2020. "Gross Employment Effects in the Renewable Energy Industry in Germany—An Input–Output Analysis from 2000 to 2018," Sustainability, MDPI, vol. 12(15), pages 1-21, July.
    10. Sooriyaarachchi, Thilanka M. & Tsai, I-Tsung & El Khatib, Sameh & Farid, Amro M. & Mezher, Toufic, 2015. "Job creation potentials and skill requirements in, PV, CSP, wind, water-to-energy and energy efficiency value chains," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 653-668.
    11. Lambert, Rosebud Jasmine & Silva, Patrícia Pereira, 2012. "The challenges of determining the employment effects of renewable energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 4667-4674.
    12. Omri, Emna & Chtourou, Nouri & Bazin, Damien, 2015. "Solar thermal energy for sustainable development in Tunisia: The case of the PROSOL project," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1312-1323.
    13. Stavropoulos, S. & Burger, M.J., 2020. "Modelling strategy and net employment effects of renewable energy and energy efficiency: A meta-regression," Energy Policy, Elsevier, vol. 136(C).
    14. Luigi Aldieri & Jonas Grafström & Kristoffer Sundström & Concetto Paolo Vinci, 2019. "Wind Power and Job Creation," Sustainability, MDPI, vol. 12(1), pages 1-23, December.
    15. Duscha, Vicki & Fougeyrollas, Arnaud & Nathani, Carsten & Pfaff, Matthias & Ragwitz, Mario & Resch, Gustav & Schade, Wolfgang & Breitschopf, Barbara & Walz, Rainer, 2016. "Renewable energy deployment in Europe up to 2030 and the aim of a triple dividend," Energy Policy, Elsevier, vol. 95(C), pages 314-323.
    16. Arvanitopoulos, T. & Agnolucci, P., 2020. "The long-term effect of renewable electricity on employment in the United Kingdom," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    17. Damien Bazin & Emna Omri & Nouri Chtourou, 2015. "Solar Thermal Energy for Sustainable Development in Tunisia," Post-Print halshs-01070616, HAL.
    18. Cox, Michael & Peichl, Andreas & Pestel, Nico & Siegloch, Sebastian, 2014. "Labor demand effects of rising electricity prices: Evidence for Germany," Energy Policy, Elsevier, vol. 75(C), pages 266-277.
    19. repec:hal:spmain:info:hdl:2441/3qoljitavv93bptuhfaq9drocb is not listed on IDEAS
    20. Arouri, Mohamed El Hedi & Ben Youssef, Adel & M'henni, Hatem & Rault, Christophe, 2014. "Exploring the Causality Links between Energy and Employment in African Countries," IZA Discussion Papers 8296, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Renewable energy sources; Earnings inequality; Skill-biased technical change; RES support scheme; Italy;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • D41 - Microeconomics - - Market Structure, Pricing, and Design - - - Perfect Competition

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:72:y:2017:i:c:p:117-127. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.