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Retraining investment for U.S. transition from coal to solar photovoltaic employment

Author

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  • Louie, Edward P.
  • Pearce, Joshua M.

Abstract

Although coal remains the largest source of electricity in the U.S., a combination of factors is driving a decrease in profitability and employment in the coal-sector. Meanwhile, the solar photovoltaic (PV) industry is growing rapidly in the U.S. and generating many jobs that represent employment opportunities for laid off coal workers. In order to determine the viability of a smooth transition from coal to PV-related employment, this paper provides an analysis of the cost to retrain current coal workers for solar photovoltaic industry employment in the U.S. The current coal industry positions are determined, the skill sets are evaluated and the salaries are tabulated. For each type of coal position, the closest equivalent PV position is determined and then the re-training time and investment are quantified. These values are applied on a state-by-state basis for coal producing states employing the bulk of coal workers as a function of time using a reverse seniority retirement program for the current American fleet of coal-powered plants. The results show that a relatively minor investment in retraining would allow the vast majority of coal workers to switch to PV-related positions even in the event of the elimination of the coal industry.

Suggested Citation

  • Louie, Edward P. & Pearce, Joshua M., 2016. "Retraining investment for U.S. transition from coal to solar photovoltaic employment," Energy Economics, Elsevier, vol. 57(C), pages 295-302.
    • Handle: RePEc:eee:eneeco:v:57:y:2016:i:c:p:295-302
    DOI: 10.1016/j.eneco.2016.05.016
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    Cited by:

    1. John Dorrell & Keunjae Lee, 2020. "The Cost of Wind: Negative Economic Effects of Global Wind Energy Development," Energies, MDPI, vol. 13(14), pages 1-25, July.
    2. Zhang, Xiaoli & Cui, Xueqin & Li, Bo & Hidalgo-Gonzalez, Patricia & Kammen, Daniel M & Zou, Ji & Wang, Ke, 2022. "Immediate actions on coal phaseout enable a just low-carbon transition in China’s power sector," Applied Energy, Elsevier, vol. 308(C).
    3. David A. Fleming‐Muñoz & Lavinia Poruschi & Thomas Measham & Jacqui Meyers & Magnus Moglia, 2020. "Economic vulnerability and regional implications of a low carbon emissions future," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), pages 575-604, July.
    4. Michieka, Nyakundi M. & Graziano, Marcello & Musso, Marta & Fouquet, Roger, 2022. "Energy transitions and labor market patterns in the U.S. coal industry," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 501-514.
    5. Fleming-Munoz, David A. & Poruschi, Lavinia & Measham, Thomas & Meyers, Jacqui & Moglia, Magnus, 2020. "Economic vulnerability and regional implications of a low carbon emissions future," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), July.
    6. Joshua M. Pearce, 2019. "Towards Quantifiable Metrics Warranting Industry-Wide Corporate Death Penalties," Social Sciences, MDPI, vol. 8(2), pages 1-13, February.
    7. Zafrilla, Jorge-Enrique & Arce, Guadalupe & Cadarso, María-Ángeles & Córcoles, Carmen & Gómez, Nuria & López, Luis-Antonio & Monsalve, Fabio & Tobarra, María-Ángeles, 2019. "Triple bottom line analysis of the Spanish solar photovoltaic sector: A footprint assessment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 114(C), pages 1-1.
    8. Gabriela Ileana Iacobuţă & Niklas Höhne & Heleen Laura van Soest & Rik Leemans, 2021. "Transitioning to Low-Carbon Economies under the 2030 Agenda: Minimizing Trade-Offs and Enhancing Co-Benefits of Climate-Change Action for the SDGs," Sustainability, MDPI, vol. 13(19), pages 1-22, September.
    9. Guillermo MONTT & Kirsten S. WIEBE & Marek HARSDORFF & Moana SIMAS & Antoine BONNET & Richard WOOD, 2018. "Does climate action destroy jobs? An assessment of the employment implications of the 2‐degree goal," International Labour Review, International Labour Organization, vol. 157(4), pages 519-556, December.
    10. Nikolaos Apostolopoulos & Alexandros Kakouris & Panagiotis Liargovas & Petar Borisov & Teodor Radev & Sotiris Apostolopoulos & Sofia Daskou & Eleni Ε. Anastasopoulou, 2023. "Just Transition Policies, Power Plant Workers and Green Entrepreneurs in Greece, Cyprus and Bulgaria: Can Education and Retraining Meet the Challenge?," Sustainability, MDPI, vol. 15(23), pages 1-21, November.
    11. Chelsea Schelly & Don Lee & Elise Matz & Joshua M. Pearce, 2021. "Applying a Relationally and Socially Embedded Decision Framework to Solar Photovoltaic Adoption: A Conceptual Exploration," Sustainability, MDPI, vol. 13(2), pages 1-18, January.
    12. Bowen, Alex & Kuralbayeva, Karlygash & Tipoe, Eileen L., 2018. "Characterising green employment: The impacts of ‘greening’ on workforce composition," Energy Economics, Elsevier, vol. 72(C), pages 263-275.
    13. Arvanitopoulos, T. & Agnolucci, P., 2020. "The long-term effect of renewable electricity on employment in the United Kingdom," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    14. Bowen, Alex & Kuralbayeva, Karlygash & Tipoe, Eileen L., 2018. "Characterising green employment: The impacts of ‘greening’ on workforce composition," Energy Economics, Elsevier, vol. 72(C), pages 263-275.
    15. Jessica A. Crowe, 2020. "The Effect of Partisan Cues on Support for Solar and Wind Energy in the United States," Social Science Quarterly, Southwestern Social Science Association, vol. 101(4), pages 1461-1474, July.
    16. Allan, Grant J. & Ross, Andrew G., 2019. "The characteristics of energy employment in a system-wide context," Energy Economics, Elsevier, vol. 81(C), pages 238-258.
    17. Stanley Semelane, & Nnamdi Nwulu, & Njabulo Kambule, & Henerica Tazvinga,, 2021. "Evaluating available solar photovoltaic business opportunities in coal phase-out regions – An energy transition case of Steve Tshwete local municipality in South Africa," Energy Policy, Elsevier, vol. 155(C).
    18. Wimhurst, Joshua J. & Greene, J. Scott & Koch, Jennifer, 2023. "Predicting commercial wind farm site suitability in the conterminous United States using a logistic regression model," Applied Energy, Elsevier, vol. 352(C).
    19. Goddard, George & Farrelly, Megan A., 2018. "Just transition management: Balancing just outcomes with just processes in Australian renewable energy transitions," Applied Energy, Elsevier, vol. 225(C), pages 110-123.

    More about this item

    Keywords

    Employment; Energy industry; Solar photovoltaic; Coal; Jobs; Green jobs;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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