CORDIS Archive
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Do 'Green' Policies Create or Destroy Jobs?Balancing the needs of today with those of tomorrow means ensuring jobs for today's workers and a clean environment for their children. These needs are often portrayed as contradictory. A recent OECD study shows otherwise.As the impact of human activity on the delicate balance of the Earth's ecosystems becomes better understood, there is general agreement that we must take all possible steps to reduce pollution and minimise environmental damage. But the need to protect the environment can lead to conflict: large industries such as those producing chemicals, iron, steel, pulp, paper and food have been grappling with environmental constraints for almost 20 years, and most do not enjoy the experience.During various periods of recession in the last 20 years, pollution control measures have been slammed by business and labour representatives as inflationary, detrimental to economic growth, a diversion to investors, and the cause of numerous plant closures and job losses. At the same time, environmentalists have argued that the net effect of environmental policies on employment is positive and that there is a large potential for simultaneously stimulating employment and protecting the environment. Who is right? Industry vs. EnvironmentAn in-depth report, 'Environmental policies and employment', just published by the Organisation for Economic Co-operation and Development (OECD) looks at this conflict from two angles. First, it provides a theoretical framework by outlining the various ways in which environmental policies have the potential to affect employment levels. It explores how jobs can be created by eco-industries, maintenance, water and waste management, and lost as a result of the detrimental effects of environmental policy on the competitiveness and therefore employment capacity of some sectors of industry. Then it gathers and analyses actual data from OECD countries to determine the real impact that environmental policies have had on employment in the recent past. Environment-related Employment is GrowingThe report uses the statistical data available to show that 1-3% of the labour force in most OECD countries are employed in environment-related jobs and concludes that the range of skills required is broad: workers in this sector include engineers and specialised management staff but also low-skilled maintenance, cleaning and waste collection jobs. The negative effects of environmental policy are more difficult to determine with any accuracy, but the book weighs up the evidence and argues that environmental constraints have not been directly responsible for large numbers of lay-offs in any industry. In fact, the economic models and the data available show that the small net effect of environmental policy is, if anything, slightly positive. In the future, the impact could be much greater, particularly if growth in environmental industries is rapid and sustained. Integrating Environmental and Employment PoliciesThe major policy issue now facing OECD countries is to work out how best to integrate environmental and employment policies and, if possible, to make them mutually reinforcing. The book discusses many possible ways forward, including targeting environmental protection programs to create the largest possible number of jobs, developing clean technologies, relying more on renewable energy sources, recycling more waste and creating specific vocational training programs in environmental protection management and technology."Green tax reforms are already in place in several OECD countries and are being contemplated in many others. The trick will be to devise systems that can benefit both the environment and employment.
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" environmental constraints have not been directly responsible for large numbers of lay-offs in any industry the small net effect of environmental policy is, if anything, slightly positive. "
In Brief ...
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