IDEAS home Printed from https://ideas.repec.org/a/bla/intlab/v157y2018i4p519-556.html
   My bibliography  Save this article

Does climate action destroy jobs? An assessment of the employment implications of the 2‐degree goal

Author

Listed:
  • Guillermo MONTT
  • Kirsten S. WIEBE
  • Marek HARSDORFF
  • Moana SIMAS
  • Antoine BONNET
  • Richard WOOD

Abstract

The Paris Agreement lays out the objective of keeping global warming below 2 °C. The goal can be achieved by increasing both the share of renewables in the energy mix and energy efficiency. Such action entails a transformation of the energy sector, which, given its linkages with the rest of the economy, will have a knock‐on effect on other sectors. Using scenarios based on a multiregional input–output database, this article explores the economy‐wide and worldwide employment impact of such a transition. Findings suggest that by 2030 most economies will experience net job creation and reallocation across industries. Job creation is driven by the construction, manufacturing and renewables sectors.

Suggested Citation

  • Guillermo MONTT & Kirsten S. WIEBE & Marek HARSDORFF & Moana SIMAS & Antoine BONNET & Richard WOOD, 2018. "Does climate action destroy jobs? An assessment of the employment implications of the 2‐degree goal," International Labour Review, International Labour Organization, vol. 157(4), pages 519-556, December.
  • Handle: RePEc:bla:intlab:v:157:y:2018:i:4:p:519-556
    DOI: 10.1111/ilr.12118
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/ilr.12118
    Download Restriction: no

    File URL: https://libkey.io/10.1111/ilr.12118?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
    ---><---

    References listed on IDEAS

    as
    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.
    2. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    3. Kirsten S. Wiebe & Norihiko Yamano, 2016. "Estimating CO2 Emissions Embodied in Final Demand and Trade Using the OECD ICIO 2015: Methodology and Results," OECD Science, Technology and Industry Working Papers 2016/5, OECD Publishing.
    4. Fragkos, Panagiotis & Paroussos, Leonidas, 2018. "Employment creation in EU related to renewables expansion," Applied Energy, Elsevier, vol. 230(C), pages 935-945.
    5. Stern,Nicholas, 2007. "The Economics of Climate Change," Cambridge Books, Cambridge University Press, number 9780521700801.
    6. Ian P Cassar, 2015. "Estimates of output, income value added and employment multipliers for the Maltese economy," CBM Working Papers WP/03/2015, Central Bank of Malta.
    7. Pierre Cahuc & Stéphane Carcillo & André Zylberberg, 2014. "Labor Economics," SciencePo Working papers hal-03256826, HAL.
    8. Kjell Arne Brekke & Olof Johansson-Stenman, 2008. "The behavioural economics of climate change," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 24(2), pages 280-297, Summer.
    9. 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.
    10. James D Ward & Paul C Sutton & Adrian D Werner & Robert Costanza & Steve H Mohr & Craig T Simmons, 2016. "Is Decoupling GDP Growth from Environmental Impact Possible?," PLOS ONE, Public Library of Science, vol. 11(10), pages 1-14, October.
    11. Marcel P. Timmer & Abdul Azeez Erumban & Bart Los & Robert Stehrer & Gaaitzen J. de Vries, 2014. "Slicing Up Global Value Chains," Journal of Economic Perspectives, American Economic Association, vol. 28(2), pages 99-118, Spring.
    12. Kirsten Svenja Wiebe & Eivind Lekve Bjelle & Johannes Többen & Richard Wood, 2018. "Implementing exogenous scenarios in a global MRIO model for the estimation of future environmental footprints," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-18, December.
    13. Kirsten S. Wiebe, 2016. "The impact of renewable energy diffusion on European consumption-based emissions," Economic Systems Research, Taylor & Francis Journals, vol. 28(2), pages 133-150, June.
    14. Arnold Tukker & Arjan de Koning & Richard Wood & Troy Hawkins & Stephan Lutter & Jose Acosta & Jose M. Rueda Cantuche & Maaike Bouwmeester & Jan Oosterhaven & Thomas Drosdowski & Jeroen Kuenen, 2013. "Exiopol - Development And Illustrative Analyses Of A Detailed Global Mr Ee Sut/Iot," Economic Systems Research, Taylor & Francis Journals, vol. 25(1), pages 50-70, March.
    15. Garrett-Peltier, Heidi, 2017. "Green versus brown: Comparing the employment impacts of energy efficiency, renewable energy, and fossil fuels using an input-output model," Economic Modelling, Elsevier, vol. 61(C), pages 439-447.
    16. Konstantin Stadler & Richard Wood & Tatyana Bulavskaya & Carl†Johan Södersten & Moana Simas & Sarah Schmidt & Arkaitz Usubiaga & José Acosta†Fernández & Jeroen Kuenen & Martin Bruckner & Stefan, 2018. "EXIOBASE 3: Developing a Time Series of Detailed Environmentally Extended Multi†Regional Input†Output Tables," Journal of Industrial Ecology, Yale University, vol. 22(3), pages 502-515, June.
    17. Montt, Guillermo E. & Maître, Nicolas. & Amo-Agyei, Silas., 2018. "The transition in play worldwide employment trends in the electricity sector," ILO Working Papers 994987492402676, International Labour Organization.
    18. Louie, Edward P. & Pearce, Joshua M., 2016. "Retraining investment for U.S. transition from coal to solar photovoltaic employment," Energy Economics, Elsevier, vol. 57(C), pages 295-302.
    19. Victor, Peter A., 2012. "Growth, degrowth and climate change: A scenario analysis," Ecological Economics, Elsevier, vol. 84(C), pages 206-212.
    20. Cahuc, Pierre & Carcillo, Stéphane & Zylberberg, André, 2014. "Labor Economics, second edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262027704, December.
    21. J.-F. Mercure & H. Pollitt & J. E. Viñuales & N. R. Edwards & P. B. Holden & U. Chewpreecha & P. Salas & I. Sognnaes & A. Lam & F. Knobloch, 2018. "Macroeconomic impact of stranded fossil fuel assets," Nature Climate Change, Nature, vol. 8(7), pages 588-593, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dominique MÉDA, 2019. "Three scenarios for the future of work," International Labour Review, International Labour Organization, vol. 158(4), pages 627-652, December.
    2. Kelly Sims & Soyoung Oh, 2023. "Job creation and deep decarbonization," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 39(4), pages 765-778.
    3. Malerba, Daniele, 2021. "Welche Verteilungsfragen ergeben sich aus der Klimapolitik? Aktuelle Erkenntnisse aus Entwicklungsländern," Analysen und Stellungnahmen 1/2021, German Institute of Development and Sustainability (IDOS).
    4. Raimi, Daniel & Greenspon, Jacob, 2022. "Matching Geographies and Job Skills in the Energy Transition," RFF Working Paper Series 22-25, Resources for the Future.
    5. Rissman, Jeffrey & Bataille, Chris & Masanet, Eric & Aden, Nate & Morrow, William R. & Zhou, Nan & Elliott, Neal & Dell, Rebecca & Heeren, Niko & Huckestein, Brigitta & Cresko, Joe & Miller, Sabbie A., 2020. "Technologies and policies to decarbonize global industry: Review and assessment of mitigation drivers through 2070," Applied Energy, Elsevier, vol. 266(C).
    6. Malerba, Daniele, 2021. "What are the distributional implications of climate policies? Recent evidence from developing countries," Briefing Papers 3/2021, German Institute of Development and Sustainability (IDOS).
    7. Christian Lutz & Lisa Becker & Andreas Kemmler, 2021. "Socioeconomic Effects of Ambitious Climate Mitigation Policies in Germany," Sustainability, MDPI, vol. 13(11), pages 1-20, June.
    8. Celani de Macedo, Alessandra & Cantore, Nicola & Barbier, Laura & Matteini, Marco & Pasqualetto, Giorgia, 2020. "The Impact of Industrial Energy Efficiency on Economic and Social Indicators," FACTS: Firms And Cities Towards Sustainability 305185, Fondazione Eni Enrico Mattei (FEEM) > FACTS: Firms And Cities Towards Sustainability.
    9. Nicholas Stern & Anna Valero, 2021. "Innovation, growth and the transition to net-zero emissions," CEP Discussion Papers dp1773, Centre for Economic Performance, LSE.
    10. Stern, Nicholas & Valero, Anna, 2021. "Innovation, growth and the transition to net-zero emissions," Research Policy, Elsevier, vol. 50(9).
    11. Nicholas Stern & Anna Valero, 2021. "Innovation, growth and the transition to net-zero emissions," POID Working Papers 008, Centre for Economic Performance, LSE.
    12. Malerba, Daniele & Gaentzsch, Anja & Ward, Hauke, 2021. "Mitigating poverty: The patterns of multiple carbon tax and recycling regimes for Peru," Energy Policy, Elsevier, vol. 149(C).
    13. Stern, Nicholas & Sivropoulos-Valero, Anna Valero, 2021. "Innovation, growth and the transition to net-zero emissions," LSE Research Online Documents on Economics 114385, London School of Economics and Political Science, LSE Library.

    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. Banacloche, Santacruz & Cadarso, Maria Angeles & Monsalve, Fabio & Lechon, Yolanda, 2020. "Assessment of the sustainability of Mexico green investments in the road to Paris," Energy Policy, Elsevier, vol. 141(C).
    2. Zafrilla, Jorge-Enrique & Arce, Guadalupe & Cadarso, María-Ángeles & Córcoles, Carmen & Gómez, Nuria & López, Luis-Antonio & Monsalve, Fabio & Tobarra, María-Ángeles, 2019. "Triple bottom line analysis of the Spanish solar photovoltaic sector: A footprint assessment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 114(C), pages 1-1.
    3. Bjelle, Eivind Lekve & Wiebe, Kirsten S. & Többen, Johannes & Tisserant, Alexandre & Ivanova, Diana & Vita, Gibran & Wood, Richard, 2021. "Future changes in consumption: The income effect on greenhouse gas emissions," Energy Economics, Elsevier, vol. 95(C).
    4. Luigi Aldieri & Jonas Grafström & Kristoffer Sundström & Concetto Paolo Vinci, 2019. "Wind Power and Job Creation," Sustainability, MDPI, vol. 12(1), pages 1-23, December.
    5. Cahen-Fourot, Louison & Campiglio, Emanuele & Godin, Antoine & Kemp-Benedict, Eric & Trsek, Stefan, 2021. "Capital stranding cascades: The impact of decarbonisation on productive asset utilisation," Energy Economics, Elsevier, vol. 103(C).
    6. 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).
    7. Luigi Aldieri & Jonas Grafström & Concetto Paolo Vinci, 2021. "The Effect of Marshallian and Jacobian Knowledge Spillovers on Jobs in the Solar, Wind and Energy Efficiency Sector," Energies, MDPI, vol. 14(14), pages 1-16, July.
    8. Bernardo, Giovanni & D'Alessandro, Simone, 2014. "Transition to sustainability? Feasible scenarios towards a low-carbon economy," MPRA Paper 53746, University Library of Munich, Germany.
    9. Nasirov, Shahriyar & Girard, Aymeric & Peña, Cristobal & Salazar, Felipe & Simon, François, 2021. "Expansion of renewable energy in Chile: Analysis of the effects on employment," Energy, Elsevier, vol. 226(C).
    10. Dell’Anna, Federico, 2021. "Green jobs and energy efficiency as strategies for economic growth and the reduction of environmental impacts," Energy Policy, Elsevier, vol. 149(C).
    11. Zhang, Xiaoli & Cui, Xueqin & Li, Bo & Hidalgo-Gonzalez, Patricia & Kammen, Daniel M & Zou, Ji & Wang, Ke, 2022. "Immediate actions on coal phaseout enable a just low-carbon transition in China’s power sector," Applied Energy, Elsevier, vol. 308(C).
    12. van den Bergh, J.C.J.M. & Botzen, W.J.W., 2015. "Monetary valuation of the social cost of CO2 emissions: A critical survey," Ecological Economics, Elsevier, vol. 114(C), pages 33-46.
    13. Otto Brøns-Petersen & Søren Havn Gjedsted, 2021. "Climate change and institutional change: what is the relative importance for economic performance?," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(2), pages 333-360, April.
    14. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2014. "What Do We Learn from the Weather? The New Climate-Economy Literature," Journal of Economic Literature, American Economic Association, vol. 52(3), pages 740-798, September.
    15. Albert, Osei-Owusu Kwame & Marianne, Thomsen & Jonathan, Lindahl & Nino, Javakhishvili Larsen & Dario, Caro, 2020. "Tracking the carbon emissions of Denmark's five regions from a producer and consumer perspective," Ecological Economics, Elsevier, vol. 177(C).
    16. Kverndokk, Snorre & Rose, Adam, 2008. "Equity and Justice in Global Warming Policy," International Review of Environmental and Resource Economics, now publishers, vol. 2(2), pages 135-176, October.
    17. Ng, Pin & Zhao, Xiaobing, 2011. "No matter how it is measured, income declines with global warming," Ecological Economics, Elsevier, vol. 70(5), pages 963-970, March.
    18. Kousky, Carolyn & Rostapshova, Olga & Toman, Michael & Zeckhauser, Richard, 2009. "Responding to threats of climate change mega-catastrophes," Policy Research Working Paper Series 5127, The World Bank.
    19. Jacques, Pierre & Delannoy, Louis & Andrieu, Baptiste & Yilmaz, Devrim & Jeanmart, Hervé & Godin, Antoine, 2023. "Assessing the economic consequences of an energy transition through a biophysical stock-flow consistent model," Ecological Economics, Elsevier, vol. 209(C).
    20. Vermeulen, Robert & Schets, Edo & Lohuis, Melanie & Kölbl, Barbara & Jansen, David-Jan & Heeringa, Willem, 2021. "The heat is on: A framework for measuring financial stress under disruptive energy transition scenarios," Ecological Economics, Elsevier, vol. 190(C).

    More about this item

    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:bla:intlab:v:157:y:2018:i:4:p:519-556. 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: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/ilounch.html .

    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.