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Green Jobs: Impacts of a Green Economy on Employment

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Green Jobs: Impacts of a Green Economy on Employment Green Jobs: Impacts of a Green Economy on Employment Published by: Green Jobs: Impacts of a Green Economy on Employment * Klaus Jacob, Rainer Quitzow and Holger Bär – Environmental Policy Research Centre, Freie Universität Berlin Translated from German by InPuzzle The authors would like to thank Georg Schäfer, Elena Lau and colleagues (GIZ), Dr. Gerhard Ressel and colleagues (BMZ) and Ulrike Lehr (GWS) for providing valuable advice and comments on the draft versions of this study. * This study reflects the exclusive personal opinion of the authors, and is not necessarily consistent with the positions held by GIZ and BMZ. GREEN JOBS: IMPACTS OF A GREEN ECONOMY ON EMPLOYMENT CONTENTS Tables, Figures, Boxes ................................................................................................................................................................................................................ 7 Index of abbreviations .............................................................................................................................................................................................................. 8 Executive Summary .................................................................................................................................................................................................................... 9 Introduction .................................................................................................................................................................................................................................13 1 Overview of green economy concepts .......................................................................................................................................................15 1.1 The international discourse on green economy ....................................................................................................................................15 1.2 Demarcation and measurement of green economic sectors ..........................................................................................................17 1.2.1 Environmental technologies in the strict sense of the term ...............................................................................................17 1.2.2 A broad understanding of environmental industries ...............................................................................................................17 1.3 Conclusion ................................................................................................................................................................................................................18 2 Concepts of green jobs and employment effects in a green economy ..............................................................................19 2.1 From the growth of environmental industries to the impact of green growth on employment ................................. 19 2.2 Green jobs: concepts and definitions ..........................................................................................................................................................19 2.3 Employment effects of the transition to a green economy .............................................................................................................20 2.4 Qualitative employment effects of a green economy ������������������������������������������������������������������������������������������������������������������������21 2.4.1 Green economy and green skills ........................................................................................................................................................22 2.4.2 Green jobs and decent work ................................................................................................................................................................22 2.5 Conclusion ................................................................................................................................................................................................................24 3 Economic and environmental policy instruments for structuring and managing the transition to a green economy ............................................................................................................................ 25 3.1 Instruments for promoting a green economy ....................................................................................................................................... 25 3.2 Market-based instruments .............................................................................................................................................................................. 26 3.2.1 Tradable rights ........................................................................................................................................................................................... 27 3.2.2 Environmental taxes, charges and deposit systems ................................................................................................................ 28 3.2.3 Phase-out of environmentally-damaging subsidies ............................................................................................................... 28 3.3 Market-creating environmental policy instruments .......................................................................................................................... 28 3.3.1 Direct promotion of demand ............................................................................................................................................................. 28 3.3.2 Indirect promotion of environmentally-friendly technologies or economic sectors ............................................. 29 3.3.3 Regulation of demand ........................................................................................................................................................................... 29 3.3.4 Self-regulation of market players .................................................................................................................................................... 30 3.3.5 Payments for ecosystem services .................................................................................................................................................... 30 3.3.6 Public procurement ................................................................................................................................................................................ 31 3.3.7 Export promotion .................................................................................................................................................................................... 31 3.4 Technology and investment promotion measures in the context of an environmental industry policy ................. 31 3.5 Sustainable infrastructure policy ................................................................................................................................................................. 31 3.6 Monitoring and evaluation .............................................................................................................................................................................. 32 3.7 Conclusion ............................................................................................................................................................................................................... 33 4 GREEN JOBS: IMPACTS OF A GREEN ECONOMY ON EMPLOYMENT 4 Employment effects of a green economy policy: Concepts and action mechanisms ............................................ 34 4.1 Substitution effects, work intensity and labour productivity ........................................................................................................ 34 4.2 Energy prices, economic growth and employment ............................................................................................................................. 35 4.3 Labour market rigidities .................................................................................................................................................................................... 36 4.4 Environmental regulation, innovation and productivity .................................................................................................................. 36 4.5 Growth opportunities in new markets of the green economy ...................................................................................................... 36 4.6 Risk of migrating polluting industries ....................................................................................................................................................... 37 4.7 Management of natural resources, ecosystem services and employment .............................................................................. 37 4.8 Conclusion .......................................................................................................................................................................................38 5 Employment promotion in the context of green economy strategies ............................................................................... 39 5.1 Measures to improve coordination mechanisms on the labour market ................................................................................... 39 5.2 Adapting technical and vocational
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