The Sectorial Intensity of Production of Renewable Energy Sources in Italy: Measurement and Effects on Earnings
Government of the Italian Republic (Italy), Ministry of Economy and Finance, Department of the Treasury Working Paper No. 1
22 Pages Posted: 12 May 2016
Date Written: February 26, 2016
The literature on renewable energy sources (RES) does not provide a shared methodology to measure the sectorial intensity of production linked to RES. Furthermore, empirical evidence on the relationship between RES intensity of production and workers’ earnings is scant. The aim of this paper is to fill in these literature gaps providing, on the one hand, an original microdatabased methodology to measure the RES sectorial intensity of production, and, on the other hand, estimating, through panel data techniques, the relationship between RES sectorial intensity of production and earnings for a representative sample of Italian workers in the period 2002-2009. Focusing on the case of Italy in the first decade of the 21th century is very relevant given that in that period Italy promoted one of the most generous renewable support schemes worldwide. Our main findings are the following: i) the RES sectorial intensity of production in Italy largely increased in 2008-2009; ii) on average, the RES sectorial intensity of production does not affect earnings levels; iii) remarkably, a clear skill-premium effect emerges when the RES sectorial intensity of production increases.
Keywords: Renewable Energy Sources, Earnings Inequality, Skill-Biased Technical Change, RES Support Scheme, Italy
JEL Classification: Q4, J31, L11, D41
Suggested Citation: Suggested Citation