2024/21 | LEM Working Paper Series | ||||||||||||||||
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Creating Jobs Out of the Green: The Employment Effects of the Energy Transition |
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Elisabetta Cappa, Francesco Lamperti and Gianluca Pallante |
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Keywords | |||||||||||||||||
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renewable energy, employment multiplier, green stimulus, shift-share
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JEL Classifications | |||||||||||||||||
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Q43, Q20, Q50, C26, O44
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Abstract | |||||||||||||||||
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This paper empirically analyzes the employment macro-regional effects
of renewable energy (RE) investments. It uses a novel geo-localized
dataset tracking RE installations across four European countries and
spanning three decades. To address the non-random deployment of RE
plants, we exploit the physical potential for RE technologies and
construct an instrument for the regional exposure to
technology-specific investments. We find that one megawatt of
installed capacity generates 40 jobs over seven years, primarily in
construction and agriculture. Impacts are concentrated in rural and
low-income areas, and extend to regional output, with an RE investment
multiplier exceeding unity over a 5-year horizon.
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