Heterogeneous impacts of climate policy on regional and gendered labor market outcomes in Europe

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The effects of climate policies on socioeconomic outcomes are intensively discussed both in academia and politics. Transformation of the economy needs to be balanced with various socio-economic goals. For example, the European Commission explicitly addresses in its European Green Deal that the transformation of the economy has to follow a ‘just and inclusive’ transition. The literature on the employment effects of environmental policies tends to find aggregated effects of climate policy to be small , yet highly heterogeneous along various dimensions. Both regional and gendered heterogeneity in response to climate policy are currently rarely analyzed. Related literature, however, indicates both theoretically and empirically that labor market outcomes in response to climate policies might be heterogeneous in these dimensions. Heterogeneity may arisue both due to distinct exposure to climate policy shocks as well as distinct adaptation. The research project aims to empirically explore these effects for a broad sample of European regions, in order to identify the existence, direction and magnitude of these heterogeneities in climate policy effects. The regional dimension allows to focus on general equilibrium impacts, to identify regionally heterogeneous effects, and to circumvent potential degrees-of-freedom problems. The project aims to contribute to the following questions empirically: What are the effects of climate policy on male and female employment? Do regional heterogeneities exist and which factors cause them? Which role does sectoral and geographical reallocation play? Are there distinct effects on different labor market indicators?