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  1. Securing future-fit jobs in the green transformation
    a policy framework for industrial policy
    Published: [2023]
    Publisher:  ZOE, Institute for Future-fit Economies gUG, Cologne, Germany

    Achieving compatibility between economies and planetary boundaries poses a momentous challenge. It requires a fundamental restructuring of current industrial systems, with a dual focus on the creation and protection of green technologies and firms,... more

    Access:
    Verlag (kostenfrei)
    Resolving-System (kostenfrei)
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    DS 651
    No inter-library loan

     

    Achieving compatibility between economies and planetary boundaries poses a momentous challenge. It requires a fundamental restructuring of current industrial systems, with a dual focus on the creation and protection of green technologies and firms, as well as the redirection of workers and technologies from ecologically harmful activities to support sustainable production patterns. This paper acknowledges that during the process of green industrial restructuring, certain non-future fit sectors will inevitably decline due to regulatory requirements or reduced competitiveness. Allowing market forces to solely determine the decline of these sectors would result in extensive economic and social consequences. Instead, this paper advocates for the implementation of active industrial policies to facilitate the phasing out of non-future-fit sectors and to ensure a just transition for the workers affected. To this end, the paper introduces a data-driven political framework with two objectives: 1) identify emission-intensive sectors with limited potential to stay competitive (non-future-fit sectors) and 2) identify sectors capable of absorbing workers from declining sectors while presenting better economic potential (complementary future-fit sectors). Despite the data limitations, applying this framework in Germany and Hungary reveals two significant challenges. First, the results indicate a limited number of skill-related sectors able to absorb workers from declining industries, highlighting the reluctance of workers to adapt to the changing landscape due to the costs associated with retraining and relocation. Second, a market-driven approach to the green transformation is likely to result in gradual shifts, requiring ongoing worker retraining as other problematic sectors decline. These preliminary findings underscore the need to anticipate these challenges and prioritise worker retraining and skill development, particularly in cases where there are limited complementary future-fit sectors.

     

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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/279432
    Series: ZOE discussion papers ; no. 10 (June 2023)
    Subjects: Green Transformation; Industrial Policy; Competitiveness; Emission Intensity; Economic Complexit
    Scope: 1 Online-Ressource (circa 37 Seiten), Illustrationen
  2. Trade-off or tension
    can carbon be priced without risking economic competitiveness?
    Published: [2022]
    Publisher:  ZOE, Institute for Future-fit Economies gUG, Cologne, Germany

    While reducing industrial greenhouse gas (GHG) emissions is undoubtedly necessary to avoid an ecological disaster, political support for environmental regulation depends largely on its effectiveness and expected side-effects. A potential fallout... more

    Access:
    Verlag (kostenfrei)
    Resolving-System (kostenfrei)
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    DS 651
    No inter-library loan

     

    While reducing industrial greenhouse gas (GHG) emissions is undoubtedly necessary to avoid an ecological disaster, political support for environmental regulation depends largely on its effectiveness and expected side-effects. A potential fallout often associated with environmental policies is a decline in economic competitiveness. Therefore, it is vital to understand whether there is a trade-off, implying that climate mitigation policies necessarily lead to competitiveness losses, or if a suitable policy design can achieve climate change mitigation without risking significant losses in competitiveness. This paper provides a systematic overview of the existing literature - including modelling studies and econometric analyses - regarding the association between GHG emissions reductions and competitiveness risks. To structure the literature, we develop a framework that allows us to cluster the reviewed papers by their theoretical and their empirical approach, rendering possible the analysis of differences between the resulting clusters. Scrutinising the findings of 80 papers, we determine that declines in competitiveness and industrial relocation to unregulated countries (carbon leakage) have so far not been relevant outcomes of existing environmental policies, neither on the firm nor on the country level. Nevertheless, they should not be neglected in the assessment of future policies, as modelling studies foresee small but significant levels of comparative disadvantages and carbon leakage. We discuss potential reasons for this discrepancy between study approaches. Overall, the empirical evidence suggests that carbon pricing regulation and economic competitiveness can be reconciled under specific circumstances, which must be provided by a coherent policy mix that takes climate change mitigation seriously while addressing possible negative side-effects.

     

    Export to reference management software   RIS file
      BibTeX file
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/270985
    Series: ZOE discussion papers ; no. 9 (August 2022)
    Subjects: Carbon Pricing; Comparative Advantage; Competitiveness; International Trade; Technological Innovation
    Scope: 1 Online-Ressource (circa 22 Seiten), Illustrationen