Employment effects of green policies in the Philippines

Employment effects of green policies in the Philippines: Summary for policymakers

This Policy Note weighs in on this on-going discussion by providing some indications of the potential impacts of transitioning to a low-carbon, environmentally sustainable economy on aggregate employment demand. It identifies the likely winners and losers from “greening” the Philippine economy and highlights the role of productivity differences within and among sectors on the future of jobs.

It is important to stress that the results presented are dependent on the way the greener sectors are approximated. Due to lack of primary survey data of the ‘real green economy’ the above proxies are used to specify the green sectors. This raises some concerns. For example, it is found that the green specifications in terms of the ten percentile of energy and resource efficient industries are highly correlated with higher labour productivity, notably in the service sector. That is, the most resource efficient companies also have the highest labour productivity.