Are Green Energies Employment Friendly? Empirical Evidence for Some OECD Countries over the 1985–2013 Period

Abstract

Using data for a set of 19 OECD economies over the 1985–2013 period, we analyzed the effects of green energies on employment through the application of a fixed effects model. After controlling for a set of labor market institutions, innovation, financial development, and three dimensions of globalization, we found evidence of a positive and significant relationship between green energies and employment. Specifically, a 10% increase in the amount of green energies was found to determine a 0.3% increase in employment. Our results are robust to alternative specifications and to possible external shocks. The findings presented in this paper suggest that governments should incentivize firms in investing in green energies via tax cuts or subsidies to improve environmental quality, further stimulating the creation of new jobs and new employment opportunities.