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How would sustainable transformations in the electricity sector of megacities impact employment levels? A case study of Beijing

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  • Zhang, Shuo
  • Yu, Yadong
  • Kharrazi, Ali
  • Ma, Tieju

Abstract

The impacts of a transition towards a low-carbon economy on the structure of labor demand are gaining widespread attention among sustainability practitioners and policymakers around the world. This is particularly relevant for megacities with large energy demands and populations, such as Beijing, the capital of China. In this study, we assess the employment impacts of Beijing's energy transition trajectory through a soft-linking approach combining MESSAGEix-Beijing, an energy system model, with Input-Output analysis. We estimate that by 2050, the total employment effect of the electricity sector in Beijing is higher under the baseline (154 thousand people) and indigenous (IND) scenarios (375 thousand people) in comparison to the imported electricity-dependent (EIMP) scenario (28 thousand people). If the input-output interaction between industries is considered, more indirect employment will be created, which will be 1.7–1.9 times more than direct employment. The most significant gains would materialize in the electricity sectors together with the Leasing and Business Service; Finance; and Transport and Telecommunications Services sectors. The indirect and induced employment benefits from the sectoral interrelation and household consumption point to the need for complementary policies in balancing trade-offs between low-carbon transitions and employment levels in the economy.

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  • Zhang, Shuo & Yu, Yadong & Kharrazi, Ali & Ma, Tieju, 2023. "How would sustainable transformations in the electricity sector of megacities impact employment levels? A case study of Beijing," Energy, Elsevier, vol. 270(C).
    • Handle: RePEc:eee:energy:v:270:y:2023:i:c:s0360544223002566
    DOI: 10.1016/j.energy.2023.126862
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