Green economy and green jobs: Myth or reality? The case of China’s power generation sector

Abstract

This paper investigates the relationship between the green economy and green jobs in China through the following question: Can the current GHG mitigation policies in China’s power generation sector bring more jobs to China? Using both analytical and input–output models this paper analyzes the direct and indirect employment impacts of two main mitigation policies in the power generation sector. This paper proves that the above-mentioned question is not simple. Mitigation policies in China’s power generation sector from 2006 to 2009 caused a total of 44 thousand net jobs losses. However, as the share of renewable energy that has an indirect employment impacts increased in 2010, the policies from 2006 to 2010 actually resulted in 472 thousand net job gains. This paper asserts that to ensure the co-existence of green economy and green jobs in China’s power generation sector, policy makers should further promote solar PV, biomass and wind technologies. In 2010, for every one percent increase in the share of solar PV generation there could be a 0.68% increase in total employment in China, larger than any other power generation technology. Finally, this paper argues that a matching educational system and personnel structure is also needed.