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How will the clean energy transition affect wages?

How will the clean energy transition affect wages?

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The clean energy transition has quietly pushed ahead in recent decades, with solar and wind energy accounting for almost 15% of total U.S. energy production in February 2024. The benefits of this transition on climate change have been celebrated, but less acknowledged have been the potential economic benefits. In a new paper, “The economic impacts of clean power,” Costas Arkolakis and Conor Walsh explain how cheaper electricity resulting from this transition could lead to a 2-3% increase in national wages. On this episode of the Brookings Podcast on Economic Activity, Walsh discusses his research with Sanjay Patnaik, director of Brookings’s Center on Regulation and Markets.

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The Brookings Podcast on Economic Activity is part of the Brookings Podcast Network. Subscribe and listen on Apple, Spotify, or wherever you listen to podcasts. Send feedback email to podcasts@brookings.edu.

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