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Policy makers justify renewable energy promotion policies partly on the grounds that such policies have positive employment impacts. We apply a computable general equilibrium model to assess the labour market impacts of the feed-in tariff policy used by the Government of Ontario. We find that although the policy is successful at increasing the employment in the `green' sectors of the economy, the policy is also likely to increase the rate of unemployment in the province, and to reduce overall labour force participation. We conclude that policies designed to promote renewable energy should be promoted for the sake of their environmental impacts, not for their labour market effects.

This paper starts from the premise that attempts to curtail global emissions of greenhouse gases are likely to be made in the next few decades. We discuss some of the possible international effects which could result from attempts to achieve such a cutback, and illustrate a methodology which we hope to extend, in subsequent work, to further evaluating the consequences of responding to the problem of global warming. We identify possible magnitudes of effects of cutting global C02 emissions, and illustrate ways in which intercountry terms-of-trade effects and changes in trade patterns may occur.

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