Is Energy Transition Beneficial to Sectors with High Employment Content? An Input-Output Analysis for France

La transition énergétique est-elle favorable aux branches à fort contenu en emploi ? Une analyse input-output pour la France

Quentin Perrier () and Philippe Quirion

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Abstract: Employment has been a key issue in the public debate on the energy transition in France. In this paper, we develop a methodology based on input-output analysis to compare the employment content of each economic sector to the national average. The differences are broken down into five components: the import rates of final goods, the import rates of intermediate goods, taxes and subsidies, salary levels and the share of labor in value added. We then estimate the employment content and the greenhouse gases (GHG) content of all French economic sectors in 2010, in order to study intersectoral substitutions stemming from an energy transition. We find that employment content variations are explained, in order of importance, by salary levels, the share of labor in value added, the import rates of final goods, the import rates of intermediate goods, and finally taxes and subsidies. In addition, our results show that the EU ETS covers sectors with high GHG content and low employ- ment content, but not sectors with high GHG content and high employment content. Concerns about employment impacts might be part of the explanation for this. Finally, we identify intersectoral substitutions that would encourage sectors with lower GHG content and higher employment content.

Keywords: Employment; Energy transition; Index decomposition analysis; Input-Output Analysis (search for similar items in EconPapers)
Date: 2017-05
New Economics Papers: this item is included in nep-ene, nep-env and nep-hme
Note: View the original document on HAL open archive server: https://hal.science/hal-01679766v1
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Published in Revue d'économie politique, 2017, 127 (5), pp.851 - 887. ⟨10.3917/redp.275.0851⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01679766

DOI: 10.3917/redp.275.0851

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