Antoine Godin — Green Jobs for Full Employment: A Stock Flow Consistent Analysis

Abstract:

In most economies, the potential of saving energy via insulation and more efficient uses of electricity is important. In order to reach the Kyoto Protocol objectives, it is urgent to develop policies that reduce the production of carbon dioxide in all sectors of the economy. This article proposes an analysis of a green job Employer of Last Resort (ELR) program based on a Stock Flow Consistent model with three productive sectors: consumption and capital goods and energy; and two household sectors: wage earners and capitalists. By increasing the energy efficiency of dwellings and public buildings, the green job ELR sector implies a change in the consumption patterns from energy consumption towards consumption goods. This could spur the private sector and thus increase its employment. Lastly, the job guarantee programs removes all involuntary unemployment and decreases poverty while decreasing carbon dioxide emissions. The environmental policy proposed in this paper is macroeconomic and offers a structural change of the economy instead of the usual micro solutions.

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Green Jobs for Full Employment: A Stock Flow Consistent Analysis
Antoine Godin | University of Pavia
(h/t Scott Fullwiler via Twitter)