IDEAS home Printed from https://ideas.repec.org/p/spo/wpmain/infohdl2441-6n4g2a16an9rtamie2eh2rpkkm.html
   My bibliography  Save this paper

Green Stimulus in a Post‑pandemic Recovery: the Role of Skills for a Resilient Recovery

Author

Listed:
  • Ziqiao Chen
  • Giovanni Marin

    (Università degli Studi di Urbino Carlo Bo)

  • David Popp

    (Maxwell School of Citizenship and Public Affairs)

  • Francesco Vona

    (Observatoire français des conjonctures économiques)

Abstract

As nations struggle to restart their economy after COVID-19 lockdowns, calls to include green investments in a pandemic-related stimulus are growing. Yet little research provides evidence of the effectiveness of a green stimulus. We begin by summarizing recent research on the effectiveness of the green portion of the 2009 American Recovery and Reinvestment Act on employment growth. Green investments are most effective in communities whose workers have the appropriate “green” skills. We then provide new evidence on the skills requirements of both green and brown occupations, as well as from occupations at risk of job losses due to COVID-19, to illustrate which workers are most likely to benefit from a pandemic-related green stimulus. We find similarities between some energy sector workers and green jobs, but a poor match between green jobs and occupations at risk due to COVID-19. Finally, we provide suggestive evidence on the potential for job training programs to help ease the transition to a green economy.

Suggested Citation

  • Ziqiao Chen & Giovanni Marin & David Popp & Francesco Vona, 2020. "Green Stimulus in a Post‑pandemic Recovery: the Role of Skills for a Resilient Recovery," Sciences Po publications info:hdl:2441/6n4g2a16an9, Sciences Po.
    • Handle: RePEc:spo:wpmain:info:hdl:2441/6n4g2a16an9rtamie2eh2rpkkm
    as

    Download full text from publisher

    File URL: https://spire.sciencespo.fr/hdl:/2441/6n4g2a16an9rtamie2eh2rpkkm/resources/2020-chen-green-stimulus-in-a-post-pandemic.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    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. Daron Acemoglu, 2003. "Cross-Country Inequality Trends," Economic Journal, Royal Economic Society, vol. 113(485), pages 121-149, February.
    3. Gueorgui Kambourov & Iourii Manovskii, 2009. "Occupational Specificity Of Human Capital," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(1), pages 63-115, February.
    4. repec:hal:spmain:info:hdl:2441/2vteelu0n785l82j764n6ul273 is not listed on IDEAS
    5. Gabriel Chodorow-Reich, 2019. "Geographic Cross-Sectional Fiscal Spending Multipliers: What Have We Learned?," American Economic Journal: Economic Policy, American Economic Association, vol. 11(2), pages 1-34, May.
    6. 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.
    7. Christina Gathmann & Uta Schönberg, 2010. "How General Is Human Capital? A Task-Based Approach," Journal of Labor Economics, University of Chicago Press, vol. 28(1), pages 1-49, January.
    8. Bill Dupor & Peter B. McCrory, 2018. "A Cup Runneth Over: Fiscal Policy Spillovers from the 2009 Recovery Act," Economic Journal, Royal Economic Society, vol. 128(611), pages 1476-1508, June.
    9. Stijn Broecke & Glenda Quintini & Marieke Vandeweyer, 2018. "Wage Inequality and Cognitive Skills: Reopening the Debate," NBER Chapters, in: Education, Skills, and Technical Change: Implications for Future US GDP Growth, pages 251-286, National Bureau of Economic Research, Inc.
    10. Francine D. Blau & Lawrence M. Kahn, 2005. "Do Cognitive Test Scores Explain Higher U.S. Wage Inequality?," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 184-193, February.
    11. Marin, Giovanni & Vona, Francesco, 2019. "Climate policies and skill-biased employment dynamics: Evidence from EU countries," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    12. Laura Montenovo & Xuan Jiang & Felipe Lozano Rojas & Ian M. Schmutte & Kosali I. Simon & Bruce A. Weinberg & Coady Wing, 2020. "Determinants of Disparities in Covid-19 Job Losses," NBER Working Papers 27132, National Bureau of Economic Research, Inc.
    13. repec:hal:spmain:info:hdl:2441/1fkb59dcsg9alqqq6qv18jj5us is not listed on IDEAS
    14. Francesco Vona, 2019. "Job losses and political acceptability of climate policies: why the ‘job-killing’ argument is so persistent and how to overturn it," Climate Policy, Taylor & Francis Journals, vol. 19(4), pages 524-532, April.
    15. repec:aei:rpbook:24240 is not listed on IDEAS
    16. David Popp & Francesco Vona & Giovanni Marin & Ziqiao Chen, 2020. "The Employment Impact of Green Fiscal Push: Evidence from the American Recovery Act," NBER Working Papers 27321, National Bureau of Economic Research, Inc.
    17. Simon Mongey & Laura Pilossoph & Alex Weinberg, 2020. "Which Workers Bear the Burden of Social Distancing Policies?," Working Papers 2020-51, Becker Friedman Institute for Research In Economics.
    18. Shardul Agrawala & Damien Dussaux & Norbert Monti, 2020. "What policies for greening the crisis response and economic recovery?: Lessons learned from past green stimulus measures and implications for the COVID-19 crisis," OECD Environment Working Papers 164, OECD Publishing.
    19. Simon Mongey & Laura Pilossoph & Alexander Weinberg, 2021. "Which workers bear the burden of social distancing?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(3), pages 509-526, September.
    20. Daniel J. Wilson, 2012. "Fiscal Spending Jobs Multipliers: Evidence from the 2009 American Recovery and Reinvestment Act," American Economic Journal: Economic Policy, American Economic Association, vol. 4(3), pages 251-282, August.
    21. Dupor, Bill & Mehkari, M. Saif, 2016. "The 2009 Recovery Act: Stimulus at the extensive and intensive labor margins," European Economic Review, Elsevier, vol. 85(C), pages 208-228.
    22. Garin, Andrew, 2019. "Putting America to work, where? Evidence on the effectiveness of infrastructure construction as a locally targeted employment policy," Journal of Urban Economics, Elsevier, vol. 111(C), pages 108-131.
    23. Hafstead, Marc A.C. & Williams, Roberton C., 2018. "Unemployment and environmental regulation in general equilibrium," Journal of Public Economics, Elsevier, vol. 160(C), pages 50-65.
    24. Yip, Chi Man, 2018. "On the labor market consequences of environmental taxes," Journal of Environmental Economics and Management, Elsevier, vol. 89(C), pages 136-152.
    25. repec:hal:spmain:info:hdl:2441/6d7es28iae9pjoil7092hs41h3 is not listed on IDEAS
    26. repec:hal:spmain:info:hdl:2441/7ii74oepuk9mc8fhilvvhfmbgp is not listed on IDEAS
    27. Acemoglu, Daron & Pischke, Jorn-Steffen, 1999. "Beyond Becker: Training in Imperfect Labour Markets," Economic Journal, Royal Economic Society, vol. 109(453), pages 112-142, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. Marin, Giovanni & Vona, Francesco, 2023. "Finance and the reallocation of scientific, engineering and mathematical talent," Research Policy, Elsevier, vol. 52(5).
    3. Tao, Hu & Zhuang, Shan & Xue, Rui & Cao, Wei & Tian, Jinfang & Shan, Yuli, 2022. "Environmental Finance: An Interdisciplinary Review," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    4. repec:hal:spmain:info:hdl:2441/6m5kss847r91no96hiublu6anu is not listed on IDEAS
    5. Anderson, Brilé & Cammeraat, Emile & Dechezleprêtre, Antoine & Dressler, Luisa & Gonne, Nicolas & Lalanne, Guy & Martins Guilhoto, Joaquim & Theodoropoulos, Konstantinos, 2023. "Designing policy packages for a climate-neutral industry: A case study from the Netherlands," Ecological Economics, Elsevier, vol. 205(C).
    6. Maria Alejandra Torres León, 2022. "Go green or go home? Energy transition, directed technical change and wage inequalit," Documentos CEDE 20104, Universidad de los Andes, Facultad de Economía, CEDE.
    7. Sumarno, Theresia B. & Sihotang, Parulian & Prawiraatmadja, Widhyawan, 2022. "Exploring Indonesia's energy policy failures through the JUST framework," Energy Policy, Elsevier, vol. 164(C).
    8. Lazo, Joaquín & Aguirre, Gerson & Watts, David, 2022. "An impact study of COVID-19 on the electricity sector: A comprehensive literature review and Ibero-American survey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    9. Pedro R. R. Rochedo & Panagiotis Fragkos & Rafael Garaffa & Lilia Caiado Couto & Luiz Bernardo Baptista & Bruno S. L. Cunha & Roberto Schaeffer & Alexandre Szklo, 2021. "Is Green Recovery Enough? Analysing the Impacts of Post-COVID-19 Economic Packages," Energies, MDPI, vol. 14(17), pages 1-19, September.
    10. Magacho, Guilherme & Espagne, Etienne & Godin, Antoine & Mantes, Achilleas & Yilmaz, Devrim, 2023. "Macroeconomic exposure of developing economies to low-carbon transition," World Development, Elsevier, vol. 167(C).
    11. Saboori, Behnaz & Gholipour, Hassan F. & Rasoulinezhad, Ehsan & Ranjbar, Omid, 2022. "Renewable energy sources and unemployment rate: Evidence from the US states," Energy Policy, Elsevier, vol. 168(C).
    12. Wan, Daoxia & Xue, Rui & Linnenluecke, Martina & Tian, Jinfang & Shan, Yuli, 2021. "The impact of investor attention during COVID-19 on investment in clean energy versus fossil fuel firms," Finance Research Letters, Elsevier, vol. 43(C).
    13. Yifan Zhong & Yameng Li & Jian Ding & Yiyi Liao, 2021. "Risk Management: Exploring Emerging Human Resource Issues during the COVID-19 Pandemic," JRFM, MDPI, vol. 14(5), pages 1-23, May.
    14. Tian, Jinfang & Yu, Longguang & Xue, Rui & Zhuang, Shan & Shan, Yuli, 2022. "Global low-carbon energy transition in the post-COVID-19 era," Applied Energy, Elsevier, vol. 307(C).
    15. Angela Köppl & Margit Schratzenstaller, 2022. "Macroeconomic Effects of Green Recovery Programmes. Conceptual Framing and a Review of the Empirical Literature," WIFO Working Papers 646, WIFO.
    16. Azimli, Asil, 2022. "Degree and structure of return dependence among commodities, energy stocks and international equity markets during the post-COVID-19 period," Resources Policy, Elsevier, vol. 77(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:hal:spmain:info:hdl:2441/6n4g2a16an9rtamie2eh2rpkkm is not listed on IDEAS
    2. Vona, Francesco, 2023. "Skills and human capital for the low-carbon transition in developing and emerging economies," FEEM Working Papers 338778, Fondazione Eni Enrico Mattei (FEEM).
    3. Vona, Francesco, 2023. "Managing the distributional effects of climate policies: A narrow path to a just transition," Ecological Economics, Elsevier, vol. 205(C).
    4. Francesco Vona, 2023. "Skills and human capital for the low-carbon transition in developing and emerging economies," Working Papers 2023.19, Fondazione Eni Enrico Mattei.
    5. Angela Köppl & Margit Schratzenstaller, 2022. "Macroeconomic Effects of Green Recovery Programmes. Conceptual Framing and a Review of the Empirical Literature," WIFO Working Papers 646, WIFO.
    6. Marin, Giovanni & Vona, Francesco, 2019. "Climate policies and skill-biased employment dynamics: Evidence from EU countries," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    7. repec:hal:spmain:info:hdl:2441/5ahh4t5kfl8nprei89ignlk5nl is not listed on IDEAS
    8. Jean-Luc Gaffard, 2021. "La transition écologique : incertitude, irréversibilité et modèle institutionnel," GREDEG Working Papers 2021-04, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France, revised Feb 2021.
    9. Saussay, Aurélien & Sato, Misato & Vona, Francesco & O’Kane, Layla, 2022. "Who’s fit for the low-carbon transition? Emerging skills and wage gaps in job and data," FEEM Working Papers 329079, Fondazione Eni Enrico Mattei (FEEM).
    10. Mireille Chiroleu-Assouline, 2022. "Rendre acceptable la nécessaire taxation du carbone. Quelles pistes pour la France ?," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(1), pages 15-53.
    11. repec:hal:spmain:info:hdl:2441/2vteelu0n785l82j764n6ul273 is not listed on IDEAS
    12. repec:hal:spmain:info:hdl:2441/6d7es28iae9pjoil7092hs41h3 is not listed on IDEAS
    13. Filippo Bontadini & Francesco Vona, 2020. "Anatomy of Green Specialization: Evidence from EU Production Data, 1995-2015," Working Papers hal-03403070, HAL.
    14. Jiyu Zhao & Ning Zhang, 2023. "Environmental regulation and labor market: a bibliometric analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 6095-6116, July.
    15. Marin, Giovanni & Vona, Francesco, 2021. "The impact of energy prices on socioeconomic and environmental performance: Evidence from French manufacturing establishments, 1997–2015," European Economic Review, Elsevier, vol. 135(C).
    16. Francesco Vona, 2019. "Job losses and political acceptability of climate policies: why the ‘job-killing’ argument is so persistent and how to overturn it," Climate Policy, Taylor & Francis Journals, vol. 19(4), pages 524-532, April.
    17. Bill Dupor & Marios Karabarbounis & Marianna Kudlyak & M Saif Mehkari, 2023. "Regional Consumption Responses and the Aggregate Fiscal Multiplier," Review of Economic Studies, Oxford University Press, vol. 90(6), pages 2982-3021.
    18. Marin, Giovanni & Vona, Francesco, 2023. "Finance and the reallocation of scientific, engineering and mathematical talent," Research Policy, Elsevier, vol. 52(5).
    19. Tomomi Miyazaki & Haruo Kondoh, 2022. "Effects of Monetary and Fiscal Policy Interactions on Regional Employment: Evidence from Japan," Discussion Papers 2206, Graduate School of Economics, Kobe University.
    20. repec:hal:spmain:info:hdl:2441/6m5kss847r91no96hiublu6anu is not listed on IDEAS
    21. repec:hal:spmain:info:hdl:2441/1jrfjrj6fp8t6q12fv5lra520c is not listed on IDEAS
    22. Ruchi Avtar & Kristian S. Blickle & Rajashri Chakrabarti & Janavi Janakiraman & Maxim L. Pinkovskiy, 2023. "Understanding the Linkages between Climate Change and Inequality in the United States," Economic Policy Review, Federal Reserve Bank of New York, vol. 29(1), pages 1-39, June.
    23. Gabriella De Sario & Giovanni Marin & Agnese Sacchi, 2023. "Citizens' attitudes towards climate mitigation policies: The role of occupational exposure in EU countries," Kyklos, Wiley Blackwell, vol. 76(2), pages 255-280, May.
    24. Bessho, Shun-ichiro, 2021. "Local fiscal multipliers and population aging in Japan," Japan and the World Economy, Elsevier, vol. 60(C).
    25. 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.
    26. Kouki, Amairisa, 2023. "Beyond the “Comforts” of work from home: Child health and the female wage penalty," European Economic Review, Elsevier, vol. 157(C).

    More about this item

    Keywords

    Green subsides; Green stimulus; American Recovery and Reinvestment Act; Heterogeneous effect; Distributional impacts;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spo:wpmain:info:hdl:2441/6n4g2a16an9rtamie2eh2rpkkm. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Spire @ Sciences Po Library (email available below). General contact details of provider: https://edirc.repec.org/data/ecspofr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.