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Green Jobs and Renewable Electricity Policies: Employment Impacts of Ontario's Feed-in Tariff

  • Böhringer Christoph

    ()

    (Oldenburg University)

  • Rivers Nicholas J.

    ()

    (University of Ottawa)

  • Rutherford Thomas F.

    ()

    (University of Wisconsin-Madison)

  • Wigle Randall

    ()

    (Wilfrid Laurier University)

Policy makers justify renewable energy promotion policies partly on the grounds that such policies have positive employment impacts. We apply a computable general equilibrium model to assess the labour market impacts of the feed-in tariff policy used by the Government of Ontario. We find that although the policy is successful at increasing the employment in the `green' sectors of the economy, the policy is also likely to increase the rate of unemployment in the province, and to reduce overall labour force participation. We conclude that policies designed to promote renewable energy should be promoted for the sake of their environmental impacts, not for their labour market effects.

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Article provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.

Volume (Year): 12 (2012)
Issue (Month): 1 (June)
Pages: 1-40

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Handle: RePEc:bpj:bejeap:v:12:y:2012:i:1:n:25
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