Green Energies, Employment, and Institutional Quality: Some Evidence for the OECD

Using a sample of 19 OECD countries over the 1985-2011 period, we propose the application of fixed effects regression to appraise the impact of green energies on employment and to assess how the quality of institutions shapes the relationship. The evidence reported in this paper indicates that higher supply of green energies enhances employment, though the effect is crucially mediated by the quality of institutions, depending on the measure of institutional quality employed. Further, the relationship remains stable under both Kyoto agreements and the 2007 financial crisis.