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Employment Effects of Renewable Energy Supply – A Meta Analysis. WWWforEurope Policy Paper No. 12

Author

Listed:
  • Ina Meyer
  • Mark Sommer

    (Austrian Institute of Economic Research)

Abstract

The paper investigates a central hypothesis of the green economy concept, which states that transitioning to a low-carbon economy is justified on a sound economic basis. We analyse this hypothesis by focussing on employment effects from renewable energy deployment, based on an evaluation of 23 selected impact studies from peer-reviewed journals. The studies are categorised into two clusters, one consisting of studies that represent employment factors of specific renewable technologies, and another that compiles model-based scenario assessments on employment effects from specific renewable energy policies. Both clusters distinguish the applied methodologies and the type of employment effects considered – direct, indirect, induced, gross or net. Given the heterogeneity of assumptions, the results of the different studies are hardly comparable, although we find that a majority of the investigated scenarios show positive net employment effects. These results crucially depend on the financing of an RES support scheme and the global competitiveness (technological lead) for a specific technology. The positive link between renewable energy deployment and job creation is thus not straightforward, since different assumptions, system boundaries and modelled interactions such as the crowding out of alternative energy production or effects from prices, income and foreign trade influence the results. Further research is needed.

Suggested Citation

  • Ina Meyer & Mark Sommer, 2014. "Employment Effects of Renewable Energy Supply – A Meta Analysis. WWWforEurope Policy Paper No. 12," WIFO Studies, WIFO, number 47225, June.
  • Handle: RePEc:wfo:wstudy:47225
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    References listed on IDEAS

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    Cited by:

    1. Karl Aiginger, 2016. "New Dynamics for Europe: Reaping the Benefits of Socio-ecological Transition – Part I: Synthesis. WWWforEurope Deliverable No. 11," WIFO Studies, WIFO, number 58791, June.
    2. Burger, Martijn & Stavropoulos, Spyridon & Ramkumar, Shyaam & Dufourmont, Joke & van Oort, Frank, 2019. "The heterogeneous skill-base of circular economy employment," Research Policy, Elsevier, vol. 48(1), pages 248-261.
    3. BOKER Poumie & NKEMGHA ZEUFACK Guivis, 2021. "The Relationship between Energy Transition, Industrialization and Employment: A GMM Panel Var Approach," Energy Economics Letters, Asian Economic and Social Society, vol. 8(1), pages 15-28, June.
    4. Lorenzo Perrotta, 2020. "Impacto Regional del Desarrollo de Bioenergía (Biomasa) en Argentina. Un análisis Insumo-Producto para la provincia de Misiones," Asociación Argentina de Economía Política: Working Papers 4388, Asociación Argentina de Economía Política.
    5. Osiolo, Helen Hoka, 2021. "Impact of cost, returns and investments: Towards renewable energy generation in Sub-Saharan Africa," Renewable Energy, Elsevier, vol. 180(C), pages 756-772.
    6. Ana Maria Montoya Gómez & Marie-Theres von Schickfus & Markus Zimmer, 2020. "Economic Effects of Regional Energy System Transformations: An Application to the Bavarian Oberland Region," CESifo Working Paper Series 8253, CESifo.
    7. Claudia Kettner & Angela Köppl & Kurt Kratena & Ina Meyer & Franz Sinabell, 2014. "Schlüsselindikatoren zu Klimawandel und Energiewirtschaft und Beschäftigungseffekte durch Einsatz erneuerbarer Energie," WIFO Monatsberichte (monthly reports), WIFO, vol. 87(7), pages 493-509, July.
    8. Maradin Dario & Cerović Ljerka & Mjeda Trina, 2017. "Economic Effects of Renewable Energy Technologies," Naše gospodarstvo/Our economy, Sciendo, vol. 63(2), pages 49-59, June.
    9. Ana Maria Montoya Gómez, 2020. "From Fossil Fuels to Renewables: Studies on the Effects of Resource Endowments and Climate Policy on Economic Outcomes," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 90, December.
    10. 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).
    11. Dachs, Bernhard, 2017. "The impact of new technologies on the labour market and the social economy," MPRA Paper 90519, University Library of Munich, Germany.
    12. Ram, Manish & Aghahosseini, Arman & Breyer, Christian, 2020. "Job creation during the global energy transition towards 100% renewable power system by 2050," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    13. N. N., 2014. "WIFO-Monatsberichte, Heft 7/2014," WIFO Monatsberichte (monthly reports), WIFO, vol. 87(7), July.
    14. Georg Licht & Bettina Peters & Christian Köhler & Franz Schwiebacher, 2014. "The Potential Contribution of Innovation Systems to Socio-Ecological Transition. WWWforEurope Deliverable No. 4," WIFO Studies, WIFO, number 47502, June.
    15. Mori-Clement, Yadira & Bednar-Friedl, Birgit, 2019. "Do Clean Development Mechanism Projects Generate Local Employment? Testing for Sectoral Effects across Brazilian Municipalities," Ecological Economics, Elsevier, vol. 157(C), pages 47-60.

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