The social face of renewables: Econometric analysis of the relationship between renewables and employment

Renewable energy promotion has been one of the key driving forces of the world's climate change mitigation strategy. Policymakers have argued that the transition towards a low-carbon energy system has sound economic and social reasoning, since generates economic growth and employment. This central premise has not, however, been consensual in literature, which requires additional research. In this context, the goal of this paper is to analyze and provide empirical evidence of the relationship between renewable energy deployment and job creation, by employing econometric methods from panel data analysis. The research is focused on European Union's 28 member states, analyzing the relationship between historical values of renewable power generation installed capacity and employment over the period 2000-2016. Results suggest a positive relationship between these two variables, showing an increase of 0.48% in employment for each 1% increase in renewable power generation capacity. The outcomes of the present analysis enable better understanding of the social context of renewables, providing relevant insights that can constitute an auxiliary instrument to support decision-making.