Implications of energy transition on regional employments in China

Abstract

As global climate crisis intensifies and national “dual carbon” goals are introduced in China, energy transition is increasingly being prioritized. Energy transition brings about significant influences on the employment, which has attracted great attentions around the world. This study aims to exemplify the influences of energy transition on employment with a case of China. This study employs a two-way fixed effects econometric model to analyze panel data from 30 Chinese provinces between 2010 and 2023. The research findings reveal that the accelerated energy transition not only creates numerous employment opportunities but also significantly expands provincial employment levels. Furthermore, heterogeneity analyses demonstrate that provinces with higher GDP level, moderate to limited renewable energy resources, and higher employment levels—such as the developed eastern coastal provinces and certain central regions—experience a more pronounced contribution of the energy transition to employment growth. Meanwhile, policy intervention will unleash the employment effect of energy transition in high-carbon regions. There are two channels including technological innovation and industrial upgrading significantly amplify the positive effects of optimizing energy transition performance on employment. Finally, several provincial-level policy recommendations are also provided in this study to enhance the energy transition and improve employment rates.