A CGE-Analysis of Energy Policies Considering Labor Market Imperfections and Technology Specifications

Robert Küster, Ingo Ellersdorfer and Ulrich Fahl
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Robert Küster: Universität Stuttgart
Ingo Ellersdorfer: Universität Stuttgart
Ulrich Fahl: Universität Stuttgart

No 2007.7, Working Papers from Fondazione Eni Enrico Mattei

Abstract: The paper establishes a CGE/MPSGE model for evaluating energy policy measures with emphasis on their employment impacts. It specifies a dual labor market with respect to qualification, two different mechanisms for skill specific unemployment, and a technology detailed description of electricity generation. Non clearing of the dual labor market is modeled via minimum wage constraints and via wage curves. The model is exemplarily applied for the analysis of capital subsidies on the application of technologies using renewable energy sources. Quantitative results highlight that subsidies on these technologies do not automatically lead to a significant reduction in emissions. Moreover, if emission reductions are achieved these might actually partly result from negative growth effects induced by the promotion of cost inefficient technologies. Inefficiencies in the energy system increase unemployment for both skilled and unskilled labor.

Keywords: CGE; Energy Economic Analysis; Employment Impact; Choice of Technology (search for similar items in EconPapers)
JEL-codes: Q42 Q43 Q48 Q52 (search for similar items in EconPapers)
Date: 2007-01
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2007.7

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