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Is Energy Transition Beneficial to Sectors with High Employment Content? An Input-Output Analysis for France
[La transition énergétique est-elle favorable aux branches à fort contenu en emploi ? Une analyse input-output pour la France]

Author

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  • Quentin Perrier

    (CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

  • Philippe Quirion

    (CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

Abstract

Employment has been a key issue in the public debate on the energy transition in France. In this paper, we develop a methodology based on input-output analysis to compare the employment content of each economic sector to the national average. The differences are broken down into five components: the import rates of final goods, the import rates of intermediate goods, taxes and subsidies, salary levels and the share of labor in value added. We then estimate the employment content and the greenhouse gases (GHG) content of all French economic sectors in 2010, in order to study intersectoral substitutions stemming from an energy transition. We find that employment content variations are explained, in order of importance, by salary levels, the share of labor in value added, the import rates of final goods, the import rates of intermediate goods, and finally taxes and subsidies. In addition, our results show that the EU ETS covers sectors with high GHG content and low employ- ment content, but not sectors with high GHG content and high employment content. Concerns about employment impacts might be part of the explanation for this. Finally, we identify intersectoral substitutions that would encourage sectors with lower GHG content and higher employment content.

Suggested Citation

  • Quentin Perrier & Philippe Quirion, 2017. "Is Energy Transition Beneficial to Sectors with High Employment Content? An Input-Output Analysis for France [La transition énergétique est-elle favorable aux branches à fort contenu en emploi ? Un," Post-Print hal-01679766, HAL.
    • Handle: RePEc:hal:journl:hal-01679766
    DOI: 10.3917/redp.275.0851
    Note: View the original document on HAL open archive server: https://hal.science/hal-01679766
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    References listed on IDEAS

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    Cited by:

    1. Perrier, Quentin & Quirion, Philippe, 2018. "How shifting investment towards low-carbon sectors impacts employment: Three determinants under scrutiny," Energy Economics, Elsevier, vol. 75(C), pages 464-483.

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    Keywords

    Employment; Energy transition; Index decomposition analysis; Input-Output Analysis;
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