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How shifting investment towards low-carbon sectors impacts employment: Three determinants under scrutiny

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  • Perrier, Quentin
  • Quirion, Philippe
Abstract
The threat of climate change requires redirecting investment towards low-carbon sectors, and this shift generates heated debates about its impact on employment. Many studies exist, most of which use CGE or Input-Output (IO) models. However, the economic mechanisms at play remain unclear. This paper disentangles the channels of job creation and studies to what extent the results of simpler IO models diverge from CGE results.

Suggested Citation

  • Perrier, Quentin & Quirion, Philippe, 2018. "How shifting investment towards low-carbon sectors impacts employment: Three determinants under scrutiny," Energy Economics, Elsevier, vol. 75(C), pages 464-483.
    • Handle: RePEc:eee:eneeco:v:75:y:2018:i:c:p:464-483
    DOI: 10.1016/j.eneco.2018.08.023
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    8. Guillermo MONTT & Kirsten S. WIEBE & Marek HARSDORFF & Moana SIMAS & Antoine BONNET & Richard WOOD, 2018. "Does climate action destroy jobs? An assessment of the employment implications of the 2‐degree goal," International Labour Review, International Labour Organization, vol. 157(4), pages 519-556, December.
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    10. Bluedorn, John & Hansen, Niels-Jakob & Noureldin, Diaa & Shibata, Ippei & Tavares, Marina M., 2023. "Transitioning to a greener labor market: Cross-country evidence from microdata," Energy Economics, Elsevier, vol. 126(C).
    11. 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).
    12. Rokicki, Bartlomiej & de Souza, Kenia Barreiro & de Santana Ribeiro, Luiz Carlos, 2023. "Modelling the Effects of the EU Emissions Trading System in Poland: A Comparison Between IO And CGE Results," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 53(2), 14.
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    More about this item

    Keywords

    Renewable energies; Investment; Employment; CGE; Input-output;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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