Application of a Green Jobs SAM with Employment and CO2 Satellites for informed Green Policy Support: The case of Indonesia

EMPLOYMENT Working Paper No. 216

Climate change is a challenge world-wide; hence countries must adjust their economies as well as their labour markets. Recently, most economies attempt to shift to more environmentally friendly consumption and production patterns as well as compatible technologies, among others, to improve labour conditions and reduce emissions. The Green Jobs Social Accounting Matrix (GJ-SAM) -based analysis, combined with scenario simulation, has the ambition to provide helpful inputs for policy discussion and decision-making. The results based on the analysis of derived SAM model indicators and two sets of simulations results form the core of this study. The scenario simulations refer to a counter-factual of a fiscal stimulus package that can help test green-jobs sectors performance vis-à-vi brown-jobs sectors, in particular, and hybrid sectors, in general, by providing insights into how to comparatively evaluate policies aimed at shifting towards ecologically friendly technologies.

This study shows that shifting towards a green economy may help reducing green-house gas emissions in Indonesia, however, as expected, the process situation is more complex and less straightforward. It also shows clearly the inter-dependencies between the economic, the environmental and the labour spheres; hence a successful sustainable and inclusive development strategy would need to take into account all three spheres simultaneously.