The impact of clean energy investments on the Greek economy: An input–output analysis (2010–2020)

The aim of this paper is twofold: first, to calculate the “green” energy investments, by industrial sector, that Greece would need in order to satisfy a number of energy and environmental targets adopted in the context of the European Commission’s energy and climate change package; and second, to calculate the macro-economic impacts of these “green” investments on production and employment in the Greek economy. To this end, the input–output analysis has been exploited for estimating the direct, indirect and induced macroeconomic effects associated with the implementation of selected energy conservation measures, the promotion of renewable energy technologies, etc. Our findings show that the required investments would reach the amount of €47.9 billion, over the period 2010–2020. These investments will result in an average annual increase of the national product by €9.4 billion, creating simultaneously 108,000 full-time equivalent jobs for the entire period under consideration. The employment generated per €1 million investment is relatively higher in energy saving projects in buildings and transport in comparison with the development of RES in power generation sector.

► Development of clean energy technologies results in net macroeconomic benefits. ► Green investments examined will create yearly an average of 108,000 jobs in Greece. ► Energy efficiency investments are more labor intensive compared to RES projects. ► The imports of the necessary equipment reduce the output and employment effects.