The Sectorial Intensity of Production of Renewable Energy Sources in Italy: Measurement and Effects on Earnings

Government of the Italian Republic (Italy), Ministry of Economy and Finance, Department of the Treasury Working Paper No. 1

22 Pages Posted: 12 May 2016

See all articles by Michele Raitano

Michele Raitano

Sapienza University of Rome

Eleonora Romano

University of Rome "La Sapienza"

Pietro Zoppoli

Government of the Italian Republic (Italy) - Ministry of Economy and Finance - Department of the Treasury

Date Written: February 26, 2016

Abstract

The literature on renewable energy sources (RES) does not provide a shared methodology to measure the sectorial intensity of production linked to RES. Furthermore, empirical evidence on the relationship between RES intensity of production and workers’ earnings is scant. The aim of this paper is to fill in these literature gaps providing, on the one hand, an original microdatabased methodology to measure the RES sectorial intensity of production, and, on the other hand, estimating, through panel data techniques, the relationship between RES sectorial intensity of production and earnings for a representative sample of Italian workers in the period 2002-2009. Focusing on the case of Italy in the first decade of the 21th century is very relevant given that in that period Italy promoted one of the most generous renewable support schemes worldwide. Our main findings are the following: i) the RES sectorial intensity of production in Italy largely increased in 2008-2009; ii) on average, the RES sectorial intensity of production does not affect earnings levels; iii) remarkably, a clear skill-premium effect emerges when the RES sectorial intensity of production increases.

Keywords: Renewable Energy Sources, Earnings Inequality, Skill-Biased Technical Change, RES Support Scheme, Italy

JEL Classification: Q4, J31, L11, D41

Suggested Citation

Raitano, Michele and Romano, Eleonora and Zoppoli, Pietro, The Sectorial Intensity of Production of Renewable Energy Sources in Italy: Measurement and Effects on Earnings (February 26, 2016). Government of the Italian Republic (Italy), Ministry of Economy and Finance, Department of the Treasury Working Paper No. 1, Available at SSRN: https://ssrn.com/abstract=2740296

Michele Raitano (Contact Author)

Sapienza University of Rome ( email )

Via del Castro Laurenziano 9
Roma, Rome 00161
Italy

HOME PAGE: http://https://sites.google.com/a/uniroma1.it/micheleraitano-eng/

Eleonora Romano

University of Rome "La Sapienza" ( email )

via Castro del Laurenziano 9
Roma, 00191
Italy

Pietro Zoppoli

Government of the Italian Republic (Italy) - Ministry of Economy and Finance - Department of the Treasury ( email )

Via XX Settembre 97
Roma, 00187
Italy

HOME PAGE: http://www.mef.gov.it/

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