Abstract:

The urgency of the transition to a low-carbon world requires a fast decarbonization of the electricity generation system. Such a transition will change the demand for skills in the energy sector, which can generate labor market frictions: skill shortages arise if employers cannot find enough skilled workers and, vice versa, if displaced workers find it hard to get new work. This paper identifies occupation- and time-specific skill mismatch frictions during a fast transition scenario of the US power sector. We use methods from complex network theory to identify potential skill frictions for workers in these occupations, adding nuance to the green jobs debate in the literature. The changes in demand that we find are small compared with the total US labor market and can be influenced by changes to US competitiveness of energy-related products.

Citation:

Bücker, J., del Rio-Chanona, R. M., Pichler, A., Ives, M. C., & Farmer, J. D. (2025), 'Employment dynamics in a rapid decarbonization of the US power sector', Joule, Elsevier BV, https://doi.org/10.1016/j.joule.2024.12.004
Go to Document