Renewable Energy and Employment Potential: A Comparative Analysis Based on an Input-Output Model

Abstract

The present study analyses the employment effects of 12 different power generation technologies using renewable energy resources from a life cycle perspective. Employment characteristics of these technologies are quantitatively revealed by estimating direct and indirect employment creation using the Renewable Energy-Focused Input-Output (REFIO) model the authors developed. The use of the REFIO model allows for the consistent comparison of employment characteristics among all the renewable power generation technologies. The analysis finds that each of the 12 different technologies has unique features. The life cycle employment potential ranges from 1.01 to 5.04 person-year/GWh depending on the types of technologies. In addition, the employment potential is estimated by location (i.e. domestic or abroad). It should be noted that wind and photovoltaic power generation technologies indirectly create more employment opportunities abroad than other technologies. Furthermore, the present study examines not only the quantity of jobs created but also their quality. While each technology requires skilled workers for tasks that is distinctive of that technology (e.g. well drilling for geothermal, plant operation for wood biomass), a wide range of jobs in service sectors (e.g. legal work, finance and accounting, transportation) are created in common with all the technologies.