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The Green Transition and the Italian labour market

Author

Listed:
  • Gaetano Basso

    (Bank of Italy)

  • Fabrizio Colonna

    (Bank of Italy)

  • Domenico Depalo

    (Bank of Italy)

  • Graziella Mendicino

    (Bank of Italy)

Abstract

The paper discusses the role of labour in the transition to a net zero economy and provides an analysis for Italy over the period 2011-2021. First, we observe that the emissions generated from production activities declined over this period. We estimate that the contribution of employment reallocation across sectors was modest, while that of sectoral efficiency – particularly the shift in the energy mix towards cleaner sources – was decisive. Second, we show that the share of employment in the environmental goods and services sector was small in 2020 and has remained broadly stable since 2014. Our results suggest that, so far, labour has not played a prominent role in the green transition. However, this trend could change in the near future, as CO2 emission reduction targets take on an increasingly key role in production activities.

Suggested Citation

  • Gaetano Basso & Fabrizio Colonna & Domenico Depalo & Graziella Mendicino, 2023. "The Green Transition and the Italian labour market," Questioni di Economia e Finanza (Occasional Papers) 811, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_811_23
    as

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    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2023-0811/QEF_811_23.pdf
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    References listed on IDEAS

    as
    1. Francesco Vona & Giovanni Marin & Davide Consoli & David Popp, 2018. "Environmental Regulation and Green Skills: An Empirical Exploration," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(4), pages 713-753.
    2. Alpino, Matteo & Citino, Luca & Zeni, Federica, 2023. "Costs and benefits of the green transitionenvisaged in the Italian NRRP - An evaluation using the social cost of carbon," Energy Policy, Elsevier, vol. 182(C).
    3. Andrea Orame & Daniele Pianeselli, 2023. "Thinking the green transition: evidence from the automotive industry," Questioni di Economia e Finanza (Occasional Papers) 767, Bank of Italy, Economic Research and International Relations Area.
    4. repec:spo:wpmain:info:hdl:2441/1fkb59dcsg9alqqq6qv18jj5us is not listed on IDEAS
    5. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
    6. VONA Francesco, 2021. "Labour Markets and the Green Transition: a practitioner’s guide to the task-based approach," JRC Research Reports JRC126681, Joint Research Centre.
    7. Gaetano Basso & Luigi Guido & Matteo Paradisi & Andrea Petrella, 2023. "The employment activated by the National Recovery and Resilience Plan and its characteristics," Questioni di Economia e Finanza (Occasional Papers) 747, Bank of Italy, Economic Research and International Relations Area.
    8. Bontadini, Filippo & Vona, Francesco, "undated". "Anatomy of Green Specialisation: Evidence from EU Production Data, 1995-2015," FEEM Working Papers 324042, Fondazione Eni Enrico Mattei (FEEM).
    9. Filippo Bontadini & Francesco Vona, 2023. "Anatomy of Green Specialisation: Evidence from EU Production Data, 1995–2015," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 85(3), pages 707-740, August.
    10. Acemoglu, Daron & Autor, David, 2011. "Skills, Tasks and Technologies: Implications for Employment and Earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 12, pages 1043-1171, Elsevier.
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    Citations

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    Cited by:

    1. Esther Arenas-Arroyo & Jacob Fabian & Friederike Mengel & Bernhard Schmidpeter & Michel Serafinelli, 2025. "Demand for Green Skills in an Evolving Landscape," Department of Economics Working Papers wuwp385, Vienna University of Economics and Business, Department of Economics.
    2. repec:ces:ceswps:_12110 is not listed on IDEAS

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    More about this item

    Keywords

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    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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