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Do renewable energy investments create local jobs?

Author

Listed:
  • Fabra, Natalia
  • Gutiérrez, Eduardo
  • Lacuesta, Aitor
  • Ramos, Roberto

Abstract

Globally, renewable energy projects often face local opposition despite the potential for job creation. Analyzing data from over 3,900 Spanish municipalities (2017–2021), we find that new jobs frequently do not remain in the host communities. Solar projects show stronger employment and unemployment multipliers compared to wind, reflecting differing task and skill requirements. Beyond the labor market impacts, residents benefit from the investments through greater public spending and increased per capita income. However, these effects are modest, particularly in the case of small to medium-sized plants.

Suggested Citation

  • Fabra, Natalia & Gutiérrez, Eduardo & Lacuesta, Aitor & Ramos, Roberto, 2024. "Do renewable energy investments create local jobs?," Journal of Public Economics, Elsevier, vol. 239(C).
  • Handle: RePEc:eee:pubeco:v:239:y:2024:i:c:s0047272724001488
    DOI: 10.1016/j.jpubeco.2024.105212
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    More about this item

    Keywords

    Renewable energy; Employment; Unemployment; NIMBY; Spatial effects;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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