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Investment in Photovoltaics and Job Creation: Evidence from a Billion Dollar Program

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  • Wilhelm, Matthias
  • Buchheim, Lukas
  • Watzinger, Martin

Abstract

We study the labor market effects of a €60 billion investment program in photovoltaics in Germany between 2003 and 2012. According to our estimates, the program created one job lasting one year for every €120,000 in investment. Gains were concentrated in the construction sector, with spillovers to local services. The effects are stronger in weaker economic times. To address endogeneity concerns, we exploit the fact that local investment was pre-determined by the amount of available rooftops and solar radiation in a region to construct an instrumental variable estimator.

Suggested Citation

  • Wilhelm, Matthias & Buchheim, Lukas & Watzinger, Martin, 2016. "Investment in Photovoltaics and Job Creation: Evidence from a Billion Dollar Program," VfS Annual Conference 2016 (Augsburg): Demographic Change 145551, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc16:145551
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    Cited by:

    1. Buchheim, Lukas & Watzinger, Martin, 2017. "The Employment Effects of Countercyclical Infrastructure Investments," Discussion Papers in Economics 34877, University of Munich, Department of Economics.

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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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