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Employment effects of green energy policies

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  • Nico Pestel

    (IZA, Germany)

Abstract

Many industrial countries are replacing conventional power plants with renewable energy sources. Green energy policies might affect employment in different ways. A policy shift toward a low-carbon green economy may create new and additional "green jobs" in renewable energy sources and energy-efficiency technologies. However, this may potentially come with the crowding out of employment in other sectors. In addition, energy prices may increase owing to feed-in tariffs subsidizing renewables. The resulting burden may in turn stifle labor demand in industrial sectors and reduce the purchasing power of private households.

Suggested Citation

  • Nico Pestel, 2014. "Employment effects of green energy policies," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-76, July.
    • Handle: RePEc:iza:izawol:journl:y:2014:n:76
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    3. Michele Raitano & Eleonora Romano & Pietro Zoppoli, 2016. "The sectorial intensity of production of renewable energy sources in Italy:measurement and effects on earnings," Working Papers 1, Department of the Treasury, Ministry of the Economy and of Finance.
    4. Moustafa Feriga & Mancy Lozano Gracia & Pieter Serneels, 2024. "The impact of climate change on work lessons for developing countries," CSAE Working Paper Series 2024-02, Centre for the Study of African Economies, University of Oxford.
    5. Agyekum, Ephraim Bonah & Amjad, Fahd & Mohsin, Muhammad & Ansah, Michael Nii Sanka, 2021. "A bird's eye view of Ghana's renewable energy sector environment: A Multi-Criteria Decision-Making approach," Utilities Policy, Elsevier, vol. 70(C).
    6. Rezana Balla, 2020. "Digitalization of Financial Services in Albania Under Restricted Measures Covid-19," European Journal of Marketing and Economics Articles, Revistia Research and Publishing, vol. 3, ejme_v3_i.
    7. Cox, Michael & Peichl, Andreas & Pestel, Nico & Siegloch, Sebastian, 2014. "Labor demand effects of rising electricity prices: Evidence for Germany," Energy Policy, Elsevier, vol. 75(C), pages 266-277.
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    10. Adom, Philip Kofi & Amuakwa-Mensah, Franklin & Agradi, Mawunyo Prosper & Nsabimana, Aimable, 2021. "Energy poverty, development outcomes, and transition to green energy," Renewable Energy, Elsevier, vol. 178(C), pages 1337-1352.

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    More about this item

    Keywords

    employment; energy policy; renewable energy sources; energy turnaround;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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