The sectorial intensity of production of renewable energy sources in Italy:measurement and effects on earnings

Michele Raitano, Eleonora Romano and Pietro Zoppoli

No 1, Working Papers from Department of the Treasury, Ministry of the Economy and of Finance

Abstract: The literature on renewable energy sources (RES) does not provide a shared methodology to measure the sectorial intensity of production linked to RES. Furthermore, empirical evidence on the relationship between RES intensity of production and workers’ earnings is scant. The aim of this paper is to fill in these literature gaps providing, on the one hand, an original microdata-based methodology to measure the RES sectorial intensity of production, and, on the other hand, estimating, through panel data techniques, the relationship between RES sectorial intensity of production and earnings for a representative sample of Italian workers in the period 2002-2009. Focusing on the case of Italy in the first decade of the 21th century is very relevant given that in that period Italy promoted one of the most generous renewable support schemes worldwide. Our main findings are the following: i) the RES sectorial intensity of production in Italy largely increased in 2008-2009; ii) on average, the RES sectorial intensity of production does not affect earnings levels; iii) remarkably, a clear skill-premium effect emerges when the RES sectorial intensity of production increases.

Keywords: Renewable energy sources earnings inequality; skill-biased technical change; RES support scheme; Italy (search for similar items in EconPapers)
JEL-codes: D41 J31 L11 Q4 (search for similar items in EconPapers)
Pages: 20
Date: 2016-02
New Economics Papers: this item is included in nep-ene, nep-eur and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:itt:wpaper:2016-1

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