This report focuses on the employment generation opportunities of measures to reduce carbon dioxide emissions through investments in renewable energy and energy efficiency, and reviews some of the main considerations with respect to advancing effective industrial policies. The report concludes that if most countries devote about 1.5 percent of their economy’s GDP to such investments each year, it will be possible for the global economy to meet the IPCC’s 20-year intermediate emission reduction target, while also enjoying energy security for supporting sustainable growth rates.
It also shows that there are clear net-gains in employment generation in shifting from conventional energy sources to renewable energy sources and enhancing energy efficiency. These gains have wider societal implications, as decent job opportunities are likely to open up for people in the informal sector with low educational attainment levels. Targeted industrial policies will need to help these groups realize such opportunities as well as providing the training and skill acquisition needed for other positions created through green investments.
This report examines the specific industrial policy measures promoting a low-carbon transition in five focus countries, specifically Brazil, Germany, Indonesia, the Republic of Korea and South Africa, through a compilation of expert review studies. It shows that across all levels of development, major attention is being paid to the threats of climate change and opportunities of pursuing a low-carbon development path, and dedicated efforts are presented to operate efficient industrial policies to enhance green growth. However, it is clear that the major focus in developing countries will need to be on green investments and on creating an enabling environment for such investments if the global economy is to effectively combat climate change.
This report is the second volume in a two volume set. Volume I of the report, providing overall findings from the project, can be accessed here.
Renewable energy has been considered as the solution to the hydra-headed problems of energy security, energy access and climate change, especially in Africa. In addition, renewable energy sources, such as the sun, wind, wave and waste abound in Africa are in need of investment. In order to provide both policy and investment guidance, this study investigates the drivers of renewable energy demand in oil-producing African countries. Three panel data models – a random effect model, a fixed effects model and a dynamic panel data model – are used to estimate renewable energy demand with a comprehensive set of determinants. The estimation results indicate that the main drivers of renewable energy in oil-producing African countries are real income per capita, energy resource depletion per capita, carbon emissions per capita and energy prices. The study recommends that policies should encourage the consumption of commercial sources of renewable energy to attract the needed investments.