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Renewable energy sources in Italy: Sectorial intensity and effects on earnings

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  • Raitano, Michele
  • Romano, Eleonora
  • Zoppoli, Pietro

Abstract

The literature on renewable energy sources (RES) does not provide a shared methodology to measure the sectorial intensity of production linked to RES. Furthermore, empirical evidence on the relationship between RES sectorial intensity and workers’ earnings is scant. The aim of this paper is to fill in these literature gaps providing, on the one hand, an original microdata-based methodology to measure the RES sectorial intensity, and, on the other hand, estimating, through panel data techniques, the relationship between RES sectorial intensity and earnings for a representative sample of Italian workers in the period 2002–2009. Focusing on the case of Italy in the first decade of the 21th century is very relevant given that in that period Italy promoted one of the most generous renewable support schemes worldwide. The main findings are the following: i) the RES sectorial intensity in Italy largely increased in 2008–2009; ii) on average, the RES sectorial intensity does not affect earnings levels; iii) remarkably, a clear skill-premium effect emerges when the RES sectorial intensity increases.

Suggested Citation

  • Raitano, Michele & Romano, Eleonora & Zoppoli, Pietro, 2017. "Renewable energy sources in Italy: Sectorial intensity and effects on earnings," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 117-127.
    • Handle: RePEc:eee:rensus:v:72:y:2017:i:c:p:117-127
    DOI: 10.1016/j.rser.2017.01.042
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    More about this item

    Keywords

    Renewable energy sources; Earnings inequality; Skill-biased technical change; RES support scheme; Italy;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • D41 - Microeconomics - - Market Structure, Pricing, and Design - - - Perfect Competition

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