Impacts of climate policy on employment (Etlatieto Oy)
Research group: Macroeconomy and public finances Research began: 2020 Research ends: 2021 Sponsored by: Prime Minister's Office (VN TEAS funding)

Responsible for research:

Impacts of climate policy on employment (Etlatieto Oy)

Impacts of climate policy on employment (Etlatieto Oy)

The aim of this project is to explore the mechanisms and channels through which climate policy affects employment. The changes in demand for skills and professional structure in the various sectors of the national economy arising from climate policy are examined in particular. In addition to these, policy-induced changes in the structure of labour force and different product markets are examined. In this research project, other significant drivers of the transformation of work, such as digitalisation and globalization, are taken into account when formulating policy recommendations.

Research project assesses the opportunities and risks associated with the transformation of work, as well as the impact and best ways of implementing public investments and employment policies related to climate policy.

The main conclusions of the project are the activities of the public authorities, which help to reduce the probability of negative risks and increase positive implementation of the employment effects. This review focuses on implementation of climate policy, public investments in support of climate policy and labour market measures.

Research questions

This research project aims to answer following research questions:

1) What are the key mechanisms and channels of employment impact of climate policy?

2) How will demand of skills and occupational structure change as we move towards a low carbon economy?

3) What climate policy measures are particularly risky from an employment perspective?

4) To what extent and under what conditions does a tightening domestic climate policy encourage companies to generate globally successful innovations?

5) What do recent developments and prospects for global and domestic markets look like in terms of mitigating climate change?

6) How large a market share can Finnish companies achieve in this market and what would be the corresponding magnitude of the employment impacts?

7) What is the role of climate-related public investments in terms of employment?

8) What policy measures can be taken to promote the employment effects of climate policy, both in the long term and in the transition phase?

This research project will be carried out in collaboration with Etlatieto, Demos Helsinki and Finnish Environment Institute.

Responsible for research: