the default settings of the template, in particular regarding jobmultipliers, based on evidence from both firm level micro data and from recent macro level data on selected countries for the electricity sector. Section III illustrates the application of the template, taking the case Brazil’s Sustainable Development scenario for electricity generation relative to the BAU, as well as some user-specified applications that reflect alternative assumptions about job-multipliers, and about potential future configurations of the electricity mix. The section also offers a
. Fiscal Planning
D. Determinants of Overoptimism
E. Implications for the Design of Rules and Policy Institutions
I. Model Calibration and Additional Results
AN ANATOMY OF OCCUPATIONAL PATHWAYS FOR THE CLIMATE TRANSITION IN FRANCE
B. The Sectoral and Occupational Dimension of the Climate Transition
C. Green Jobs in France
D. Occupational Mobility Networks to Analyze Job Transition Pathways
E. Additional Insights on Desirable Transitions from JobMultipliers
F. Conclusion and Policy Considerations
This brief paper accompanies the Green Energy and Jobs tool, which is a simple excel-based tool to estimate the job-creation potential of greening the electricity sector. Specifically, it calculates the net job gains or losses from increasing the level of energy efficiency, and from increasing the share of clean and renewable electricity generation in the total electricity output mix. The tool relies on estimates of job multipliers in the literature, and adds evidence from firm-level data on the job-intensity of different energy sources. The paper illustrates applications of the tool using data from the IEA’s Sustainable Development Scenario compared to business-as-usual. This tool is intended to help country teams engage further on climate change issues in bilateral surveillance.
accompanies the Green Energy and Jobs tool, which is a simple excel-based tool to estimate the job-creation potential of greening the electricity sector. Specifically, it calculates the net job gains or losses from increasing the level of energy efficiency, and from increasing the share of clean and renewable electricity generation in the total electricity output mix. The tool relies on estimates of jobmultipliers in the literature, and adds evidence from firm-level data on the job-intensity of different energy sources. The paper illustrates applications of the tool using
We evaluate the direct employment effect of the public investment in key infrastructure—electricity, roads, schools and hospitals, and water and sanitation. Using rich firm-level panel data from 41 countries over 19 years, we estimate that US$1 million of public spending in infrastructure create 3–7 jobs in advanced economies, 10–17 jobs in emerging market economies, and 16–30 jobs in low-income developing countries. As a comparison, US$1 million public spending on R&D yields 5–11 jobs in R&D in OECD countries. Green investment and investment with a larger R&D component deliver higher employment effect. Overall, we estimate that one percent of global GDP in public investment can create more than seven million jobs worldwide through its direct employment effects alone.
Figure 1. JobMultipliers in Select Energy Sub-Sectors
Source: IMF. 2020 . World Economic Outlook: A Long and Difficult Ascent. Washington, DC, October.
Unit: (Job-years per gigawatt hour; levelized over lifetime of utility)
Note: Each bar shows the total number of job-years generated per GWh of capacity. This includes both direct and indirect jobs, and barring energy efficiency, exclude induced job-effects (e.g. induced by changing relative prices). The jobs created both in the initial phase of asset creation and in the subsequent operation and maintenance
long-term scarring on the labor market. Public investment spending multipliers are particularly large during recessions ( Auerbach and Gorodnichenko, 2013 ). Economists have also utilized economic recessions to model and quantify the “jobmultipliers” of fiscal stimulus spending but with mixed results. For instance, the American Recovery and Reinvestment Act (ARRA) of 2009 is estimated to have yielded about six to eight jobs per US$1 million spent in the short term ( Wilson, 2012 ; Garin, 2019 ; and Ramey, 2020 ); conversely, the Civilian Conservation Corps
This Note prepared for the G20 Infrastructure Working Group summarizes the main finding of the IMF flagships regarding the role of environmentally sustainable investment for the recovery. It emphasizes that environmentally sustainable investment is an important enabler for a resilient greener, and inclusive recovery—it creates jobs, spurs economic growth, addresses climate change, and improves the quality of life. It can also stimulate much needed private sector greener and resilient investment.
We study the effects of federal purchases on firms’ investment using a novel panel dataset that combines federal procurement contracts in the United States with key financial firm-level information. We find that 1 dollar of federal spending increases firms’ capital investment by 7 to 11 cents. The average effect masks heterogeneity: Effects are stronger for firms that face financing constraints and they are close to 0 for unconstrained firms. In line with the financial accelerator model, our findings indicate that the effect of government purchases works through easing firms’ access to external borrowing. Furthermore, industry-level analysis suggests that that the increase in investment at the firm level translates into an industry-wide effect without crowding-out capital investment of other firms in the same industry.