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

January 20, 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 December 21, 2024

Summary

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: International organization, Monetary policy

Keywords: Green policies input-output matrix employment occupations skills

Publication Details

Pages:

19
Volume:

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DOI:

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Issue:

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Series:

Selected Issues Paper No. 2023/001
Stock No:

SIPEA2023001
ISBN:

9798400229053
ISSN:

2958-7875

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