Workers’ Earnings Losses Due to the Low-Carbon Transition. Theory and Application in a CGE Model

Alves, D. P., Kanellopoulos, K., Medarac, H., Kapetaki, Z., Miranda Barbosa, E., Shortall, R., Czako, V., Telsnig, T., Vazquez Hernandez, C., Lacal Arantegui, R., Nijs, W., Gonzalez Aparicio, I., Trombetti, M., Mandras, G., Peteves, E. & Tzimas, E. (2018). EU Coal Regions: Opportunities and Challenges Ahead. Publications Office of the European Union, Luxembourg, 2018. https://doi.org/10.2760/064809. AlvesD. P. KanellopoulosK. MedaracH. KapetakiZ. Miranda BarbosaE. ShortallR. CzakoV. TelsnigT. Vazquez HernandezC. Lacal AranteguiR. NijsW. Gonzalez AparicioI. TrombettiM. MandrasG. PetevesE. TzimasE. 2018 EU Coal Regions: Opportunities and Challenges Ahead Publications Office of the European Union Luxembourg 2018 https://doi.org/10.2760/064809. Search in Google Scholar

Ashenfelter, O. C., Farber, H., & Ransom, M. R. (2010). Labor Market Monopsony. Journal of Labor Economics, 28(2), 203–210. https://doi.org/10.1086/653654. AshenfelterO. C. FarberH. RansomM. R. 2010 Labor Market Monopsony Journal of Labor Economics 28 2 203 210 https://doi.org/10.1086/653654. Search in Google Scholar

Antosiewicz, M., Fuentes, J. R. & Lewandowski, P. & Witajewski-Baltvilks, J. (2022). Distributional Effects of Emission Pricing in a Carbon-Intensive Economy: The Case of Poland. Energy Policy. Elsevier, 160(C). https://doi.org/10.1016/j.enpol.2021.112678. AntosiewiczM. FuentesJ. R. LewandowskiP. Witajewski-BaltvilksJ. 2022 Distributional Effects of Emission Pricing in a Carbon-Intensive Economy: The Case of Poland Energy Policy Elsevier 160 C https://doi.org/10.1016/j.enpol.2021.112678. Search in Google Scholar

Baran, J., Szpor, A. & Witajewski-Baltvilks, J. (2020). Low-carbon Transition in a Coal-Producing Country: A Labour Market Perspective. Energy Policy, 147, 111878. https://doi.org/10.1016/j.enpol.2020.111878. BaranJ. SzporA. Witajewski-BaltvilksJ. 2020 Low-carbon Transition in a Coal-Producing Country: A Labour Market Perspective Energy Policy 147 111878 https://doi.org/10.1016/j.enpol.2020.111878. Search in Google Scholar

Booth, A. L. & Katic, P. (2011). Estimating the Wage Elasticity of Labour Supply to a Firm: What Evidence Is There for Monopsony? Economic Record, 87(278), 359–69. https://doi.org/10.1111/j.1475-4932.2011.00728.x. BoothA. L. KaticP. 2011 Estimating the Wage Elasticity of Labour Supply to a Firm: What Evidence Is There for Monopsony? Economic Record 87 278 359 69 https://doi.org/10.1111/j.1475-4932.2011.00728.x. Search in Google Scholar

Witajewski-Baltvilks, J. & Boratyński, J. (2021). Workers or Consumers: Who Pays for Low-Carbon Transition. Theoretical Analysis of Welfare Change in General Equilibrium Setting. Central European Economic Journal 8(55), 231–45. https://doi.org/10.2478/ceej-2021-0017. Witajewski-BaltvilksJ. BoratyńskiJ. 2021 Workers or Consumers: Who Pays for Low-Carbon Transition. Theoretical Analysis of Welfare Change in General Equilibrium Setting Central European Economic Journal 8 55 231 45 https://doi.org/10.2478/ceej-2021-0017. Search in Google Scholar

Brauers, H., Herpich, P. & Oei, P.-Y. (2018). The Transformation of The German Coal Sector from 1950 to 2017: An Historical Overview. In: Gerbaulet, C., Kemfert, C., Lorenz, C., Oei, P.-Y. (Eds.), Energiewende Made in Germany: Electricity Sector Reform in the European Context. Berlin: Springer International Publishing AG. https://doi.org/10.1007/978-3-319-95126-3. BrauersH. HerpichP. OeiP.-Y. 2018 The Transformation of The German Coal Sector from 1950 to 2017: An Historical Overview In: GerbauletC. KemfertC. LorenzC. OeiP.-Y. (Eds.), Energiewende Made in Germany: Electricity Sector Reform in the European Context Berlin Springer International Publishing AG https://doi.org/10.1007/978-3-319-95126-3. Search in Google Scholar

Cahuc, P. (2018). Wage Insurance, Part-Time Unemployment Insurance and Short-Time Work in the XXI Century. Institute of Labor Economics (IZA) Discussion Paper No. 12045. CahucP. 2018 Wage Insurance, Part-Time Unemployment Insurance and Short-Time Work in the XXI Century Institute of Labor Economics (IZA) Discussion Paper No. 12045. Search in Google Scholar

Card, D., Kluve, J. & Weber, A. (2018). What Works? A Meta Analysis of Recent Active Labor Market Program Evaluations. Journal of the European Economic Association, 16(3), 894–931. https://doi.org/10.1093/jeea/jvx028. CardD. KluveJ. WeberA. 2018 What Works? A Meta Analysis of Recent Active Labor Market Program Evaluations Journal of the European Economic Association 16 3 894 931 https://doi.org/10.1093/jeea/jvx028. Search in Google Scholar

Chateau, J., Bibas, R. & Lanzi E. (2018). Impacts of Green Growth Policies on Labour Markets and Wage Income Distribution: A General Equilibrium Application to Climate and Energy Policies. OECD Environment Working Papers, No. 137, OECD Publishing, Paris. ChateauJ. BibasR. LanziE. 2018 Impacts of Green Growth Policies on Labour Markets and Wage Income Distribution: A General Equilibrium Application to Climate and Energy Policies OECD Environment Working Papers No. 137, OECD Publishing Paris Search in Google Scholar

Devarajan, S., Go, D.S., Robinson, S. & Thierfelder, K. (2011). Tax Policy to Reduce Carbon Emissions in a Distorted Economy: Illustrations from a South Africa CGE Model. The B.E. Journal of Economic Analysis and Policy, 11(1), 1–28. https://doi.org/10.2202/1935-1682.2376. DevarajanS. GoD.S. RobinsonS. ThierfelderK. 2011 Tax Policy to Reduce Carbon Emissions in a Distorted Economy: Illustrations from a South Africa CGE Model The B.E. Journal of Economic Analysis and Policy 11 1 1 28 https://doi.org/10.2202/1935-1682.2376. Search in Google Scholar

European Commission (2020). Commission Welcomes the Political Agreement on the Just Transition Fund. Press Release, December 2020, https://ec.europa.eu/commission/presscorner/detail/en/ip_20_2354. [Accessed 17 December 2024]. European Commission 2020 Commission Welcomes the Political Agreement on the Just Transition Fund Press Release December 2020, https://ec.europa.eu/commission/presscorner/detail/en/ip_20_2354. [Accessed 17 December 2024]. Search in Google Scholar

European Commission (2022). EU Cohesion Policy: €3.85 Billion for a Just Transition Toward Climate Neutral Economy in Five Polish Regions, https://ec.europa.eu/commission/presscorner/detail/en/ip_22_7413. [Accessed on 18^th December 2024]. European Commission 2022 EU Cohesion Policy: €3.85 Billion for a Just Transition Toward Climate Neutral Economy in Five Polish Regions https://ec.europa.eu/commission/presscorner/detail/en/ip_22_7413. [Accessed on 18^th December 2024]. Search in Google Scholar

European Commission (2024). EU Funding Instruments for Upskilling and Reskilling, https://employment-social-affairs.ec.europa.eu/policies-and-activities/skills-and-qualifications/working-together/eu-funding-instruments-upskilling-and-reskilling_en. [Accessed on 18^th December 2024]. European Commission 2024 EU Funding Instruments for Upskilling and Reskilling https://employment-social-affairs.ec.europa.eu/policies-and-activities/skills-and-qualifications/working-together/eu-funding-instruments-upskilling-and-reskilling_en. [Accessed on 18^th December 2024]. Search in Google Scholar

EUROSTAT (2024). Annual Detailed Enterprise Statistics for Industry (NACE Rev. 2, B-E) (2005–2020). https://ec.europa.eu/eurostat/databrowser/view/SBS_NA_IND_R2/default/table?lang=en [Accessed on 16^th Dec. 2024.] https://doi.org/10.2908/SBS_NA_IND_R2. EUROSTAT 2024 Annual Detailed Enterprise Statistics for Industry (NACE Rev. 2, B-E) (2005–2020) https://ec.europa.eu/eurostat/databrowser/view/SBS_NA_IND_R2/default/table?lang=en [Accessed on 16^th Dec. 2024.] https://doi.org/10.2908/SBS_NA_IND_R2. Search in Google Scholar

Fragkos, P. & Paroussos, L. (2018). Employment Creation in EU Related to Renewables Expansion. Applied Energy, 230(C), 935–45. https://doi.org/10.1016/j.apenergy.2018.09.032. FragkosP. ParoussosL. 2018 Employment Creation in EU Related to Renewables Expansion Applied Energy 230 C 935 45 https://doi.org/10.1016/j.apenergy.2018.09.032. Search in Google Scholar

Fæhn, T., Gomez-Plana, A.G., Kverndokk, S. (2009). Can a Carbon Permit System Reduce Spanish Unemployment? Energy Economics, 31(4), 595–604. https://doi.org/10.1016/j.eneco.2009.01.003. FæhnT. Gomez-PlanaA.G. KverndokkS. 2009 Can a Carbon Permit System Reduce Spanish Unemployment? Energy Economics 31 4 595 604 https://doi.org/10.1016/j.eneco.2009.01.003. Search in Google Scholar

Galgóczi, B. (2020). Just Transition on the Ground: Challenges and Opportunities for Social Dialogue. European Journal of Industrial Relations, 26(4), 367–382. https://doi.org/10.1177/0959680120951704. GalgócziB. 2020 Just Transition on the Ground: Challenges and Opportunities for Social Dialogue European Journal of Industrial Relations 26 4 367 382 https://doi.org/10.1177/0959680120951704. Search in Google Scholar

Hafstead, M.A.C. & Roberton W.C. (2018). Unemployment and Environmental Regulation in General Equilibrium. Journal of Public Economics, 160(C), 50–65. https://doi.org/10.1016/j.jpubeco.2018.01.013. HafsteadM.A.C. RobertonW.C. 2018 Unemployment and Environmental Regulation in General Equilibrium Journal of Public Economics 160 C 50 65 https://doi.org/10.1016/j.jpubeco.2018.01.013. Search in Google Scholar

Hafstead, M.A.C. & Roberton W.C (2020). Jobs and Environmental Regulation, Environmental and Energy Policy and the Economy, University of Chicago Press, vol. 1(1), 192–240. https://doi.org/10.1086/706799. HafsteadM.A.C. RobertonW.C 2020 Jobs and Environmental Regulation, Environmental and Energy Policy and the Economy University of Chicago Press 1 1 192 240 https://doi.org/10.1086/706799. Search in Google Scholar

Hsieh, C.T., Hurst, E., Jones Ch.I., & Klenow, P.J. (2019). The Allocation of Talent and U.S. Economic Growth. Econometrica, Econometric Society, 87(5), 1439–1474. https://doi.org/10.3982/ECTA11427. HsiehC.T. HurstE. JonesCh.I. KlenowP.J. 2019 The Allocation of Talent and U.S. Economic Growth Econometrica, Econometric Society 87 5 1439 1474 https://doi.org/10.3982/ECTA11427. Search in Google Scholar

Karapinar, B., Dudu H., Geyik, O. & Yakut, A.M. (2019). How to Reach an Elusive INDC Target: Macro-economic Implications of Carbon Taxation and Emissions Trading in Turkey. Climate Policy, 19(9), 1157–172. https://doi.org/10.1080/14693062.2019.1635875. KarapinarB. DuduH. GeyikO. YakutA.M. 2019 How to Reach an Elusive INDC Target: Macro-economic Implications of Carbon Taxation and Emissions Trading in Turkey Climate Policy 19 9 1157 172 https://doi.org/10.1080/14693062.2019.1635875. Search in Google Scholar

Kiuila O. (2018). Decarbonisation Perspectives for the Polish Economy. Energy Policy, 118(C), 69–76. https://doi.org/10.1016/j.enpol.2018.03.048s. KiuilaO. 2018 Decarbonisation Perspectives for the Polish Economy Energy Policy 118 C 69 76 https://doi.org/10.1016/j.enpol.2018.03.048s. Search in Google Scholar

Manning, A. (2003). Monopsony in Motion: Imperfect Competition in Labor Markets. New Jersey: Princeton University Press. https://doi.org/10.2307/j.ctt5hhpvk. ManningA. 2003 Monopsony in Motion: Imperfect Competition in Labor Markets New Jersey Princeton University Press https://doi.org/10.2307/j.ctt5hhpvk. Search in Google Scholar

Nong, D. (2020). Development of the Electricity-Environmental Policy CGE Model (GTAP-E-PowerS): A Case of the Carbon Tax in South Africa, Energy Policy, 140(C), 111375. https://doi.org/10.1016/j.enpol.2020.111375. NongD. 2020 Development of the Electricity-Environmental Policy CGE Model (GTAP-E-PowerS): A Case of the Carbon Tax in South Africa Energy Policy 140 C 111375 https://doi.org/10.1016/j.enpol.2020.111375. Search in Google Scholar

OECD (2024). OECD Employment Outlook 2024: The Net-Zero Transition and the Labour Market. Paris: OECD Publishing. https://doi.org/10.1787/ac8b3538-en. OECD 2024 OECD Employment Outlook 2024: The Net-Zero Transition and the Labour Market Paris OECD Publishing https://doi.org/10.1787/ac8b3538-en. Search in Google Scholar

Perrier, Q., & Quirion, P. (2018). How Shifting Investment towards Low-carbon Sectors Impacts Employment: Three Determinants under Scrutiny. Energy Economics, 75, 464–83. https://doi.org/10.1016/j.eneco.2018.08.023. PerrierQ. QuirionP. 2018 How Shifting Investment towards Low-carbon Sectors Impacts Employment: Three Determinants under Scrutiny Energy Economics 75 464 83 https://doi.org/10.1016/j.eneco.2018.08.023. Search in Google Scholar

Pollitt, H., E. Alexandri, U. Chewpreecha, & G. Klaassen (2015). Macroeconomic Analysis of the Employment Impacts of Future EU Climate Policies. Climate Policy, 15(5), 604–25. https://doi.org/10.1080/14693062.2014.953907. PollittH. AlexandriE. ChewpreechaU. KlaassenG. 2015 Macroeconomic Analysis of the Employment Impacts of Future EU Climate Policies Climate Policy 15 5 604 25 https://doi.org/10.1080/14693062.2014.953907. Search in Google Scholar

Pradhan, B. K. & Ghosh, J. (2022). A Computable General Equilibrium (CGE) Assessment of Technological Progress and Carbon Pricing in India’s Green Energy Transition via Furthering Its Renewable Capacity. Energy Economics, 106(C), 105788. https://doi.org/10.1016/j.eneco.2021.105788/. PradhanB. K. GhoshJ. 2022 A Computable General Equilibrium (CGE) Assessment of Technological Progress and Carbon Pricing in India’s Green Energy Transition via Furthering Its Renewable Capacity Energy Economics 106 C 105788 https://doi.org/10.1016/j.eneco.2021.105788/. Search in Google Scholar

Riahi, K., van Vuuren, D.P., Kriegler, E., Edmonds, J., O’Neill, B.C., Fujimori, S., Bauer, N., Calvin, K., Dellink R., Fricko O., Lutz W., Popp A., Cuaresma J.C., Samir K.C., Leimbach, M., Jiang, L., Kram, T., Rao, S., Emmerling, J., Ebi, K., Hasegawa, T., Havlik, P., Humpenöder, F., Aleluia Da Silva, L., Smith, S., Stehfest, E., Bosetti, V., Eom, J., Gernaat D., Masui, T., Rogelj, J., Strefler, J., Drouet, L., Krey, V., Luderer, G., Harmsen, M., Takahashi, K., Baumstark, L., Doelman, J.C., Kainuma, M., Klimont, Z., Marangoni, G., Lotze-Campen, H., Obersteiner, M., Tabeau & A., Tavoni, M. (2017). The Shared Socioeconomic Pathways and Their Energy, Land Use, and Greenhouse Gas Emissions Implications: An Overview. Global Environmental Change, 42, 153–168, https://doi.org/10.1016/j.gloenvcha.2016.05.009. RiahiK. van VuurenD.P. KrieglerE. EdmondsJ. O’NeillB.C. FujimoriS. BauerN. CalvinK. DellinkR. FrickoO. LutzW. PoppA. CuaresmaJ.C. SamirK.C. LeimbachM. JiangL. KramT. RaoS. EmmerlingJ. EbiK. HasegawaT. HavlikP. HumpenöderF. Aleluia Da SilvaL. SmithS. StehfestE. BosettiV. EomJ. GernaatD. MasuiT. RogeljJ. StreflerJ. DrouetL. KreyV. LudererG. HarmsenM. TakahashiK. BaumstarkL. DoelmanJ.C. KainumaM. KlimontZ. MarangoniG. Lotze-CampenH. ObersteinerM. TabeauA. TavoniM. 2017 The Shared Socioeconomic Pathways and Their Energy, Land Use, and Greenhouse Gas Emissions Implications: An Overview Global Environmental Change 42 153 168 https://doi.org/10.1016/j.gloenvcha.2016.05.009. Search in Google Scholar

Sartor, O. (2018). Implementing Coal Transitions. Insights from Case Studies of Major Coal-Consuming Economies. IDDRI and Climate Strategies. SartorO. 2018 Implementing Coal Transitions. Insights from Case Studies of Major Coal-Consuming Economies IDDRI and Climate Strategies Search in Google Scholar

Skoczkowski, T., Bielecki, S., Kochański, M., Korczak, K. (2020). Climate Change Induced Uncertainties, Risks and Opportunities for the Coal-based Region of Silesia: Stakeholders’ Perspectives. Environmental Innovation and Societal Transitions, 35, 460–481. https://doi.org/10.1016/j.eist.2019.06.001. SkoczkowskiT. BieleckiS. KochańskiM. KorczakK. 2020 Climate Change Induced Uncertainties, Risks and Opportunities for the Coal-based Region of Silesia: Stakeholders’ Perspectives Environmental Innovation and Societal Transitions 35 460 481 https://doi.org/10.1016/j.eist.2019.06.001. Search in Google Scholar

Spencer, T., Colombier, M., Sartor, O., Garg, A., Tiwari, V., Burton, J., Caetano, T., Green, F., Teng, F. & Wiseman, J. (2018). The 1.5°C Target and Coal Sector Transition: At the Limits of Societal Feasibility. Climate Policy, 18(3), 335–351. https://doi.org/10.1080/14693062.2017.1386540. SpencerT. ColombierM. SartorO. GargA. TiwariV. BurtonJ. CaetanoT. GreenF. TengF. WisemanJ. 2018 The 1.5°C Target and Coal Sector Transition: At the Limits of Societal Feasibility Climate Policy 18 3 335 351 https://doi.org/10.1080/14693062.2017.1386540. Search in Google Scholar

Törmä, H. & Kujala, S. & Kinnunen, J. (2015). The Employment and Population Impacts of the Boom and Bust of Talvivaara Mine in the Context of Severe Environmental Accidents – A CGE Evaluation. Resources Policy, 46(P2), 127–138. https://doi.org/10.1016/j.resourpol.2015.09.005. TörmäH. KujalaS. KinnunenJ. 2015 The Employment and Population Impacts of the Boom and Bust of Talvivaara Mine in the Context of Severe Environmental Accidents – A CGE Evaluation Resources Policy 46 P2 127 138 https://doi.org/10.1016/j.resourpol.2015.09.005. Search in Google Scholar