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WP/22/101

IMF Working Paper

Research Department

Jobs Impact of Green Energy Prepared by Jaden Kim and Adil Mohommad*

Authorized for distribution by Shekhar Aiyar

May 2022

IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

ABSTRACT: 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.

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This paper is intended to accompany the Green Energy and Jobs tool which can be downloaded from the IMF KE site. This builds on work featured in the October 2020 WEO Chapter 3. The authors would like to thank Florence Jaumotte, Oya Celasun, Lone Christensen, and Shekhar Aiyar for helpful comments.

Jobs Impact of Green Energy
Author: Jaden Kim and Mr. Adil Mohommad