Environment-economy modelling: employment and distributional issues
The costs of environmental policies may significantly differ across households and types of workers. These policies can also provide opportunities to reduce poverty and inequalities if combined with appropriate redistribution of the revenues they raise. In order to investigate the impact of environmental policies on poverty and inequalities, the ENV-Linkages model, which in its core specification relies on a single regional representative household, is extended to include further details on skills, employment or households.
The jobs potential of a transition towards a resource efficient and circular economy examines the consequences of a policy-driven transition towards a more resource-efficient and circular economy on employment levels across countries and sectors during the period 2018-2040. The analysis relies on simulations with ENV-Linkages, the global structural computable general equilibrium model of the OECD Environment Directorate. The results suggest that the overall reallocation of jobs due to a fiscal policy package promoting resource efficiency and the transition to a circular economy is limited to 18 million jobs in 2040 and net job creations are marginal, with 1.8 million of jobs.
Modelling of distribution impacts of energy subsidy reforms: An illustration with Indonesia provides, in the case of Indonesia, an assessment of the economic, environmental and distributional impacts of fossil fuels consumption subsidy reforms. The study is based on the context that pertained until mid-2014, when international oil prices where high and before the recent phase out of Gasoline and Diesel subsidies by the Indonesian authorities. This work is based on a version of ENV-Linkages that includes over 10 000 Indonesian household groups.