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Renewable energy investment and employment in China

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  • Ying Chen

Abstract

The potential trade-off between environmental protection and employment stability has been a concern in the literature. However, in the case of China, the employment issue has not been adequately addressed despite government’s big push on investing in renewable energy since 2007. This essay addresses the employment issue through estimating the relative employment impacts of renewable energy investments versus spending within the traditional fossil fuel sectors based on input-output modeling with China-specific data of sector and subsector weighting techniques. I find that spending within three segments of the renewable energy sectors – solar, wind and bioenergy, will produce in combination about twice as many jobs per dollar of expenditure than an equal amount of spending on fossil fuels. I also find that, more than 70 percent of jobs from renewable energy sectors are created in the informal economy. This raises questions about the quality of the jobs created through renewable energy investments.

Suggested Citation

  • Ying Chen, 2019. "Renewable energy investment and employment in China," International Review of Applied Economics, Taylor & Francis Journals, vol. 33(3), pages 314-334, May.
  • Handle: RePEc:taf:irapec:v:33:y:2019:i:3:p:314-334
    DOI: 10.1080/02692171.2018.1513458
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    Cited by:

    1. Saboori, Behnaz & Gholipour, Hassan F. & Rasoulinezhad, Ehsan & Ranjbar, Omid, 2022. "Renewable energy sources and unemployment rate: Evidence from the US states," Energy Policy, Elsevier, vol. 168(C).
    2. Yingdan Mei & Pengfei Liu & Lina Meng & Lu Lin, 2024. "Evaluate the Impacts of Wind Farm Facilities on Land Values with Geographically-Linked Microdata in China," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(2), pages 465-489, February.
    3. Ying Chen & An Li, 2021. "Global Green New Deal: A Global South perspective," The Economic and Labour Relations Review, , vol. 32(2), pages 170-189, June.
    4. Gupta, Ruchi & Guibentif, Thomas M.M. & Friedl, Markus & Parra, David & Patel, Martin Kumar, 2023. "Macroeconomic analysis of a new green hydrogen industry using Input-Output analysis: The case of Switzerland," Energy Policy, Elsevier, vol. 183(C).

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