Labor Market Implications for Green Investments and Carbon Pricing in Spain: Spain

February 28, 2023

Preview Citation

Format: Chicago

Ana Lariau, and Yu Shi. Labor Market Implications for Green Investments and Carbon Pricing in Spain: Spain, (USA: International Monetary Fund, 2023) accessed September 21, 2024

Summary

Labor Market Implications for Green Investments and Carbon Pricing in Spain green policies; input-output matrix; employment; occupations; skills ABSTRACT: We provide a tractable framework for assessing the labor market impact of policies that support the green transition of the Spanish economy, taking into account input-output linkages. We present illustrative examples that quantify changes in sectoral employment, occupations and skills stemming from two different green policies: (i) the announced green investments in the recovery plan; and (ii) an increase in carbon pricing and an expansion of the EU Emission Trading System (ETS). Our analysis shows that the labor market impact of these two policies is net positive, although the results depend on the design of the green policies, particularly on the use of the proceeds from the increase in carbon pricing. Strengthening active labor market policies, with a focus on training, and complementing them with education policies such as the expansion of vocational training, would facilitate the transition of workers from shrinking to expanding sectors.

Subject: Climate finance, Climate policy, Economic growth, Employment, Environment, International organization, Labor, Monetary policy, Sustainable growth

Keywords: Carbon pricing, Climate finance, Climate policy, Employment, Green policies, IMF staff calculation, Impact of policy, Input-output linkage, Input-output matrix, Labor market impact, Labor market implication, Occupations, Skills, Sustainable growth

Publication Details

Pages:

19
Volume:

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DOI:

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Issue:

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Series:

Selected Issues Paper No. 2023/011
Stock No:

SIPEA2023011
ISBN:

9798400235238
ISSN:

2958-7875

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