EC-IILS Joint Discussion Paper Series

These papers have been prepared by the International Institute for Labour Studies (IILS) within the framework of the joint project “Addressing European labour market and social challenges for a sustainable globalization”, which has been carried out by the European Commission (EC) and the International Labour Organization (ILO). The discussion paper series provides background information and in-depth analysis for two concluding synthesis reports that summarize the main findings of the project.
  1. EC-IILS Joint Discussion Paper Series No. 11

    Economic theories and methodologies to assess the impact of climate change on employment

    An essential aspect of this discussion paper is to present economic theories and methodologies to assess the impact of climate change on employment for the purposes of the joint EC-ILO study. The paper focuses on both empirical analysis and theoretical models by describing input-output (IO) models, Social accounting matrix (SAM), growth and real business cycles (RBC) models, computable general equilibrium (CGE) models and econometric models.

  2. EC-IILS Joint Discussion Paper Series No. 12

    Policy options and instruments for a green economy

    The discussion paper examines the theoretical background of different instruments and the suite of available environmental policy instruments. In particular, the effectiveness of a range of potential green policy instruments on reducing CO2 emissions are analyzed extensively.

  3. EC-IILS Joint Discussion Paper Series No. 13

    The double dividend and environmental tax reforms in Europe

    The paper explores how environmental policies and labour market policies can complement each other to achieve both objectives simultaneously. The paper discusses different versions of the double-dividend hypothesis and its importance in the context of global climate change. Environmental tax reforms (ETR) have often been inspired by the theoretical considerations of the double dividend hypothesis. These reforms, which were implemented across a range of EU Member States in the 1990s, are reviewed and explained. Additionally, the paper discusses the effectiveness of these reforms and reveals where improvements can be made.

  4. EC-IILS Joint Discussion Paper Series No. 14

    Green policies in the EU: A review

    The discussion paper examines a variety of green policies that EU Member States have implemented to address environmental sustainability. The paper starts with presenting available green policy instruments, such as regulations, tax instruments, the EU emission trading system, research and development (R&D) and public investment. It further discusses how these instruments are adopted in different EU Member States. Furthermore, existing green labour market policies in the EU are examined and the policy gaps are discussed.

  5. EC-IILS Joint Discussion Paper Series No. 15

    Green stimulus measures

    The main purpose of this discussion paper is to examine the variety of green stimulus measures that EU Member States as well as other countries such as the U.S., China, the Republic of Korea and Japan have implemented in response to the recent global economic crisis. The paper presents a definition and the most common types of green stimulus measures. Furthermore, detailed analysis of the types of stimulus measures reported by countries, with a specific focus on measures designated as “green” is provided. Additionally, tax-related measures and government spending in various programs are examined. Finally, the paper discusses the size of green stimulus measures and explores their employment impacts.

  6. EC-IILS Joint Discussion Paper Series No. 16

    Green structural change: Sectoral analysis and policy challenges

    The purpose of this discussion paper is to identify some of the potential challenges confronting workers and enterprises and to highlight areas where labour market and social policies can support workers to make a successful transition. The transition towards a greener economy can be described as structural change and structural change has always been characterized by massive employment transitions. The paper examines the nature and composition of employment in high and low carbon intensive industries, looking in particular at skill levels and wage share trends in the top 15 emitting industries. Moreover, a number of employment issues are analyzed, including the important question of possible net employment effects. Challenges that are likely to occur during the transition are discussed and adequate policy responses are developed. Labour market and social policies can help address challenges specific to the green transition.

  7. EC-IILS Joint Discussion Paper Series No. 17

    Economic transition following an emission tax in a RBC model with endogenous growth

    This paper investigates the short run and long run effects of introducing an emission tax. The model endogenises both the effect of damage by pollution as well as of emission tax distortions on macroeconomic variables, most importantly on economic growth. As such, it not only allows an analysis of economic fluctuations at business cycle frequency, but also a long run comparison between different environmental policy scenarios. We find that an emission tax, if its receipts are used to cut wage taxes, has a positive effect on employment and on the share of income attributed to workers. Green policy produces net distortions in the economy that will initially reduce output and growth compared to a business as usual scenario. However, accumulating environmental damages in the business as usual scenario eventually reduces its growth rate so much that the green scenario delivers net benefits. In our baseline calibration, the maximum negative net output effect of green policy is around 8%, while the effect turns positive after 90 years.