Switch to greener cars is good for jobs says study

The report, ‘Literature review on employment impacts of GHG reduction policies for transport’, found direct and indirect impacts on employment. For example, an increase in the fuel efficiency of cars with internal combustion engines may lead to more direct employment in the car industry because manufacture is more labour intensive. However, this positive impact is dependent on the competiveness of the EU car industry. On the other hand, a switch to EV is likely to reduce direct employment due to the lower labour intensity of the manufacturing process compared with traditional manufacturing; the need for new, more capital-intensive plants; and the import of batteries. However, the additional need to build charging infrastructure and the advantage over foreign competitors could reverse this negative impact and lead to more employment in the EU.

The report’s authors stress there are many uncertainties in the studies, describing them as partial, fragmented and rather weak in their economic arguments. However, overall, the report concludes that employment benefits are likely for two main reasons. First, the switch to fuel-efficient cars and advanced powertrains can be done in such a way that the total costs of car ownership (purchase costs and mileage costs) are reduced.Second, a final switch to EV manufacturing should enhance the competitive position of EU car manufacturers in the long run.

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CE Delft Study ‘Literature review on employment impacts of GHG reduction policies for transport’