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GTAP Resources: Resource Display

GTAP Resource #4743

"Employment and skill structure impacts of a transition to a low-carbon economy: a general equilibrium analysis."
by Chateau, Jean

While numerous CGE model predict that transition to low carbon economy will probably have limited impact on both net employment but also on labour reallocation across sector it still matters to study how labour market would be affected by the transition to a low carbon economy. Indeed greening the economy would require changes in technologies of production as well as resources (included labour) shifting from pollutant to non-pollutant industries. In a perfect world where individuals are homogenous people and labor market are fully flexible the adjustment costs on labour market will be low and the cost of transition too. But in the reality the skills needed in some pollutant industries would probably differ than those for less carbon intensive industries. Moreover the labour intensity by skill is also probably different between industries boost or depress by green policy action (ex. Coal mining is intensive in low skill labour but renewable-electricity generation while is more intensive in engineer skills).

The aim of the paper is to study the impact of green policy action on employment when labour market is segmented across different skills. For this we have implemented the 5-skills version of the GTAP8 database into the OECD ENV-Linkages model. For this illustrative exercise we restrain our analysis to a static version of the CGE, since for the moment we do not have any scenario/projections about future skills supply. The model is global but we will focus on greening policies in Europe in order to investigate indirectly some of the geographical aspect of the problem (for example coal mining employment is massive in Poland, like Nuclear is in France). Given the actual skill-structure of labour in GTAP database, the first goal of the paper is to investigate some possible bottlenecks and skills shortage that could appear if green policies are implemented.

Resource Details (Export Citation) GTAP Keywords
Category: 2015 Conference Paper
Status: Published
By/In: Presented at the 18th Annual Conference on Global Economic Analysis, Melbourne, Australia
Date: 2015
Created: Chateau, J. (4/15/2015)
Updated: Batta, G. (4/15/2015)
Visits: 1,156
- Calibration and parameter estimation
- Climate change policy
- Labor market issues

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