THE EMPLOYMENT IMPACT OF PRIVATE AND PUBLIC ACTIONS FOR ENERGY EFFICIENCY: EVIDENCE FROM EUROPEAN INDUSTRIES

This paper investigates the effects of private and public actions for energy efficiency on EU employment dynamics, relying on an econometric analysis on a sector-based panel dataset for 15 EU countries (1995-2009). Results show that after accounting for the sectoral output growth, investment and innovation activities, sectoral energy efficiency gains display a negative effect on employment growth, especially in energy intensive industries. Conversely, public actions towards energy efficiency may produce positive effects on employment dynamics. Indeed, the higher incidence of taxation on energy costs, the energy efficiency gains realized in the public sector industries and the implementation of a comprehensive policy mix at the country level, are factors positively influencing employment growth. This evidence highlights the complexity of the nexus between energy efficiency and employment dynamics, suggesting that superior employment performances can be achieved when complementarity effects between productivity enhancing activities and energy efficiency actions are realized.