Renewable energy sources in Italy: Sectorial intensity and effects on earnings

The literature on renewable energy sources (RES) does not provide a shared methodology to measure the sectorial intensity of production linked to RES. Furthermore, empirical evidence on the relationship between RES sectorial intensity and workers' earnings is scant. The aim of this paper is to fill in these literature gaps providing, on the one hand, an original microdata-based methodology to measure the RES sectorial intensity, and, on the other hand, estimating, through panel data techniques, the relationship between RES sectorial intensity and earnings for a representative sample of Italian workers in the period 2002-2009. Focusing on the case of Italy in the first decade of the 21th century is very relevant given that in that period Italy promoted one of the most generous renewable support schemes worldwide. The main findings are the following: i) the RES sectorial intensity in Italy largely increased in 2008-2009; ii) on average, the RES sectorial intensity does not affect earnings levels; iii) remarkably, a clear skill-premium effect emerges when the RES sectorial intensity increases.