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Labor Market Implications for Green Investments and Carbon Pricing in Spain: Spain
Author:
Ana Lariau 0000000404811396 https://isni.org/isni/0000000404811396 International Monetary Fund

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and
Ms. Yu Shi
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Series:
Selected Issues Papers
Volume/Issue:
Volume 2023: Issue 001
Language:
English
Publication Date:
20 Jan 2023
DOI:
https://doi.org/10.5089/9798400229053.018
ISBN:
9798400229053
ISSN:
2958-7875
Pages:
19
Keywords:
green policies input-output matrix employment occupations skills; labor market impact; labor market implication; carbon pricing; impact of policy; implications of green investment; Climate finance; Sustainable growth; Climate policy; Employment
Legal-disclaimer:
IMF Selected Issues Papers are prepared by IMF staff as background documentation for periodic consultations with member countries. It is based on the information available at the time it was completed.
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We provide a tractable framework for assessing the labor market impact of policies that support the green transition of the Spanish economy, taking into account input-output linkages. We present illustrative examples that quantify changes in sectoral employment, occupations and skills stemming from two different green policies: (i) the announced green investments in the recovery plan; and (ii) an increase in carbon pricing and an expansion of the EU Emission Trading System (ETS). Our analysis shows that the labor market impact of these two policies is net positive, although the results depend on the design of the green policies, particularly on the use of the proceeds from the increase in carbon pricing. Strengthening active labor market policies, with a focus on training, and complementing them with education policies such as the expansion of vocational training, would facilitate the transition of workers from shrinking to expanding sectors.

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Cover Selected Issues Papers
Selected Issues Papers
Publisher:
International Monetary Fund
Volume 2023: Issue 001