Towards a green economy in Europe: does renewable energy production has asymmetric effects on unemployment?

Sameen Naqvi,Jinchao Wang,Rizwan Ali

doi:10.1007/s11356-021-17093-2

Sameen Naqvi, Jinchao Wang + Show 1 more

Open Access

https://doi.org/10.1007/s11356-021-17093-2

Copy DOI

Abstract

Renewable energy production is necessary for digital society; it is also beneficial for labor market and sustainable development. This paper examines the impact of renewable energy production on unemployment rate by employing panel NARDL-PMG and robust asymmetric quantile regression for Europeancountries from 1991 to 2019. The results reveal that renewable energy production significantly reduced unemployment in European countries in long run. The renewable energy production effect is found significant in the asymmetric model, specifically, in European countries; a positive change in renewable energy production has a negative significant impact on unemployment, and a negative change in renewable energy production has a positive significant impact on unemployment in long run. The GDP, investment, and technology innovation process are found to be triggered in labor market by reducing the unemployment rate in the long run. In addition, the asymmetric effects of renewable energy production on unemployment growth are robust in the different quantile regression. The findings suggest some insightful policy implications for government officials and policymakers.

Highlights

IntroductionOver the past few decades, climate change has become a primary concern for policymakers worldwide
Over the past few decades, climate change has become a primary concern for policymakers worldwide.Climate change and its related problems, such as global warming, rising sea levels, floods, droughts, etc., have jeopardized the survival of mankind on earth (Usman et al, 2020)
The asymmetric effects of renewable energy production on unemployment growth are robust in the different quantile regression

Summary

Introduction

Over the past few decades, climate change has become a primary concern for policymakers worldwide. Climate change and its related problems, such as global warming, rising sea levels, floods, droughts, etc., have jeopardized the survival of mankind on earth (Usman et al, 2020). One of the primary causes of global climate change is the emissions of greenhouse gases (GHGs) due to man-induced economic and social activities. Among the GHGs, carbon dioxide (CO2) has the largest share of 76%, followed by methane (CH4) 16%, nitrous oxide (N2O) 6%, and others 2%. The excessive infusion of CO2 emissions into the atmosphere is considered a crucial proxy of environmental degradation. Many empirics have tried to find the factors to curb

Objectives

Results

Conclusion