The transition to a net zero economy, which is the main objective of the European Green Deal, will have profound implications in terms of employment, affecting both its level and composition. After illustrating the possible economic mechanisms from a theoretical point of view, the paper provides an empirical analysis of the trends observed in Italy and other major euro-area economies over the period 2011-2021.
The results suggest that, in Italy, the reduction of CO2 emissions generated by production activities was mainly due to the use of less polluting energy sources and did not have a significant impact on labour. Employment decreased only in high-emission sectors. In general, the green transition seems to be associated with a rebalancing of employment towards higher skilled jobs.
