Working Paper 07-13 - Walking the green mile in Employment - Employment projections for a green future

Danielle Devogelaer

Working Papers from Federal Planning Bureau, Belgium

Abstract: In this working paper, the employment effect triggered by a transition towards an all renewable energy system in Belgium by 2050 is scrutinized. The job impact is estimated up until the year 2030. Using a labour intensity methodology, net job gains are to be expected in each renewable trajectory for any given year. A distinction is made between construction, installation and manufacturing (CIM) and operations, maintenance and fuel processing (O&M) jobs, with the maximum amount of CIM jobs created over the reference scenario exceeding the amount of O&M jobs. This points to the fact that renewable energy sources tend to have a higher construction and installation component in employment than fossil fuels. These installation jobs, along with numerous other job types (e.g. monitoring, planning, certifying), are bound to be and remain domestic. A sensitivity analysis on the effect of applying a decreasing employment multiplier over time is modeled, accompanied by an enumeration of arguments pro and contra using this type of multiplier. All through the paper, a number of reflections are brought to the fore that may nuance the obtained figures and effects. In order for the jobs to materialize, targeted educations, preferably in close collaboration with industry, technical schooling and interest in science are crucial. Enabling policies and measures within a solid, transparent policy framework should accompany the whole process. In this regard, some policy domains and actions are described that could prove useful in tapping the vast job potential.

Keywords: Employment; Long-term energy projections; Input-output analysis; Renewable energy sources (search for similar items in EconPapers)
JEL-codes: C6 Q4 (search for similar items in EconPapers)
Date: 2013-09-09
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Persistent link: https://EconPapers.repec.org/RePEc:fpb:wpaper:201307

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