Employment dynamics in a rapid decarbonization of the US power sector

We analyze the employment dynamics of a rapid decarbonization of the US power sector, reducing emissions by 95% before 2035. We couple an input-output model with an occupational mobility network and identify three labor market phases: “scale-up,” “scale-down,” and a long-term, low-carbon, “steady st...

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Main Authors: Bücker, J, del Rio-Chanona, RM, Pichler, A, Ives, MC, Farmer, JD
Format: Journal article
Language:English
Published: Cell Press 2025
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author Bücker, J
del Rio-Chanona, RM
Pichler, A
Ives, MC
Farmer, JD
author_facet Bücker, J
del Rio-Chanona, RM
Pichler, A
Ives, MC
Farmer, JD
author_sort Bücker, J
collection OXFORD
description We analyze the employment dynamics of a rapid decarbonization of the US power sector, reducing emissions by 95% before 2035. We couple an input-output model with an occupational mobility network and identify three labor market phases: “scale-up,” “scale-down,” and a long-term, low-carbon, “steady state.” During the scale-up (2023–2034), for every job lost in an industry, 12 new jobs are created elsewhere. However, few occupations see sustained growth throughout the transition. We predict that skill mismatches will create frictions during the transition, especially in the scale-down phase. Compared with the size and fluctuations of the US labor market, the impact of this transition is modest, particularly if the US increases exports of clean energy technologies to counteract the domestic scale-down phase. However, without proper planning, rapidly growing industries will struggle to find skilled labor during the scale-up phase, while displaced workers might struggle finding jobs during the scale-down phase.
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spelling oxford-uuid:a09db90d-e0f4-4e02-bf96-1024dbf4f1422025-02-05T15:18:53ZEmployment dynamics in a rapid decarbonization of the US power sectorJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:a09db90d-e0f4-4e02-bf96-1024dbf4f142EnglishSymplectic ElementsCell Press2025Bücker, Jdel Rio-Chanona, RMPichler, AIves, MCFarmer, JDWe analyze the employment dynamics of a rapid decarbonization of the US power sector, reducing emissions by 95% before 2035. We couple an input-output model with an occupational mobility network and identify three labor market phases: “scale-up,” “scale-down,” and a long-term, low-carbon, “steady state.” During the scale-up (2023–2034), for every job lost in an industry, 12 new jobs are created elsewhere. However, few occupations see sustained growth throughout the transition. We predict that skill mismatches will create frictions during the transition, especially in the scale-down phase. Compared with the size and fluctuations of the US labor market, the impact of this transition is modest, particularly if the US increases exports of clean energy technologies to counteract the domestic scale-down phase. However, without proper planning, rapidly growing industries will struggle to find skilled labor during the scale-up phase, while displaced workers might struggle finding jobs during the scale-down phase.
spellingShingle Bücker, J
del Rio-Chanona, RM
Pichler, A
Ives, MC
Farmer, JD
Employment dynamics in a rapid decarbonization of the US power sector
title Employment dynamics in a rapid decarbonization of the US power sector
title_full Employment dynamics in a rapid decarbonization of the US power sector
title_fullStr Employment dynamics in a rapid decarbonization of the US power sector
title_full_unstemmed Employment dynamics in a rapid decarbonization of the US power sector
title_short Employment dynamics in a rapid decarbonization of the US power sector
title_sort employment dynamics in a rapid decarbonization of the us power sector
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