Towards Just Energy Transition: Renewable Energy Transition Dynamics and Sectorial Employment in Ghana

Abstract

Energy transition and the creation of sustainable jobs are major concerns towards achieving Sustainable Development Goals (SDGs) 7 and 13, particularly in emerging petroleum-producing economies such as Ghana. Our study examines Ghana’s sectorial employment vulnerability to the dynamics of energy transition. Employing a dynamic ARDL simulation model, we use quarterly data from 2011 to 2021 from Ghana’s Energy Commission, the Bank of Ghana, and the Public Interest and Accounting Committee. We find that transition scenarios increase industrial sector employment. Also, industrial sector employment changes more favorably under the 5% scenario than under the 1% scenario. Agriculture industry employment is positively impacted by the 1% energy transition scenarios but negatively impacted by the 5% scenarios. Up to the sixth year, both transition scenarios increase employment in the services sector; however, employment opportunities are more affected by the 1% scenario than by the 5% scenario. Therefore, developing a policy architecture that aids Ghana’s transition to renewable energy is essential.