The Socioeconomic Effects of Renewable Energy Expansion in Germany

Abstract: Employment is a potential socioeconomic co-benefit of renewable energy deployment. However, renewable energy is often more expensive than conventional resources, putting pressure on the economy, and during an energy transition employments can be lost from the conventional energy sector, e.g. from phased out nuclear plants. The purpose of this study was to clear the field of whether a promotion of renewable energy and energy transition in Germany could have a positive impact on overall employment, with the aim of answering following questions: Why is the literature not in agreement on the net employment effects of Germany’s renewable energy promotion?, What are the main determinants for employment effects in Germany created by renewable energy expansion?. To answer the research questions peer-reviewed articles were studied and compared by their methods, scenarios, assumptions and conclusions. Even though there are opposing opinions in this research field they diverge mainly because of different material and assumptions. The most recent research should be the most accountable since it’s based on data collected over a longer period which allows for more refined variables. These most recent research reviewed in this study points to positive results for the net employment effects up to 2030, but on a varying scale ranging from 2,000 to 263,000 net jobs. However, these results are specific for Germany, with all its inquiries, and such landing in 2030 could only be achieved if fossil fuel prices doesn’t drop significantly, if Germany keeps its position on the international market as a big exporter and the production of renewable energy techniques continues to follow their respective development path. Finally, there is still a need for more renewable energy to mitigate future climate change regardless of the employment effects.