Date of This Version
February 2007
Abstract
The paper establishes a CGE/MPSGE model for evaluating energy policy measures with emphasis on their employment impacts. It specifies a dual labor market with respect to qualification, two different mechanisms for skill specific unemployment, and a technology detailed description of electricity generation. Non clearing of the dual labor market is modeled via minimum wage constraints and via wage curves. The model is exemplarily applied for the analysis of capital subsidies on the application of technologies using renewable energy sources. Quantitative results highlight that subsidies on these technologies do not automatically lead to a significant reduction in emissions. Moreover, if emission reductions are achieved these might actually partly result from negative growth effects induced by the promotion of cost inefficient technologies. Inefficiencies in the energy system increase unemployment for both skilled and unskilled labor.
Recommended Citation
Küster, Robert; Ellersdorfer, Ingo; and Fahl, Ulrich, "A CGE-Analysis of Energy Policies Considering Labor Market Imperfections and Technology Specifications" (February 09, 2007). Fondazione Eni Enrico Mattei Working Papers. Paper 73.
https://services.bepress.com/feem/paper73