Decarbonisation and Labour Markets

Key messages:

• The effect of subsidizing green employment may be estimated from US experience: green subsidies are more effective in regions with the appropriate green skills.
• The European Green Deal should make significant provision for retraining, taking account of the nature of workers’ existing skills, and the distribution of green industries across EU countries.
• Increases in energy prices may have large effects on employment in individual firms, but less effect for the economy as a whole.
• Increases in energy prices tend to favour employees with technical skills rather than manual workers.