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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 deployment often faces opposition from local communities. Why do residents oppose those investments despite the expectation that the investments will create new jobs? Exploiting the monthly variation in the timing and size of the renewable investments across more than 3,900 Spanish municipalities from 2017 to 2021, we find that the new jobs do not always remain in the municipalities where the plants are built. We find stronger employment and unemployment multipliers for solar than wind projects, reflecting differences in the tasks and skills involved. 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, 2022. "Do Renewable Energy Investments Create Local Jobs?," CEPR Discussion Papers 17206, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:17206
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    File URL: https://cepr.org/publications/DP17206
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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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