Abstract
As more economies are transitioning away from fossil fuels for their electricity production and towards greener alternatives, many socioeconomic implications of this shift remain actively debated. The present paper attempts to assess the economic impact of investments in renewable energy sources (RESs) for Greece and whether the broader effects of this transition can offset the negative impact that will occur due to the targeted phase-out of lignite plants by 2028, which constitute the predominant power source for Greece. Our methodological approach builds on input–output analysis and the creation of composite RES industries for the estimation of the net effects of a series of monetary shocks that correspond to Greece’s phase-out investment plan, utilizing the most recent national input–output tables and satellite structural business statistics. We focus on the structural effects of these shocks on a series of socioeconomic indicators, including GDP, employment, wages, government income (through taxes), and capital formation. The results indicate that even though lignite power production still provides a significant contribution to the Greek economy, investing in renewables presents a significant opportunity for value added and job creation.
Highlights
renewable energy sources (RESs), and second, we aim to investigate whether these effects can offset the negative impact of shifting equivalent amounts of subsidies away from fossil-fuel-related industries
The difference can be attributed to the estimation procedure and different cost structure allocation of each RES type
We estimate that the EUR 8.91 billion required for the implementation of the National Energy and Climate Plans (NECPs)’s targets by 2030 will contribute EUR 6.83 billion to
Summary
Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations. As the world is headed towards the first quarter of the 21st century, issues related to climate change and the role of humanity in it are more relevant than ever. More people live on the earth than ever before, and are constantly increasing the demand for products, services, and energy, exerting significant pressure on existing production and energy networks. The exponential growth of carbon dioxide (CO2 ) and other greenhouse gas (GHG) emissions stemming from the increase in production activity and capacity were already deemed unsustainable in the last century, and policies at both the national and international level were introduced to guide the transition to “greener”
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