Post keynesian analysis of employment theories: Employment effect of renewable energy sector in Turkey

In this study it is theoretically investigated that how both demand management and employment of last resort policies of Post Keynesian School, which is mainly structured for developed countries, should be revisioned in order to be successfully implemented in the case of Turkey, regarding the rising unemployment problem. In this context, renewable energy resources, where Turkey is very rich compared to fossil resources, emerge as a strategic sector that can provide policymakers a wide space for the implementation of Post Keynesian monetary and fiscal policies with respect to unemployment. Since it is not included in the input-output tables as an independent sector, employment potential of the renewable energy sector cannot be analyzed with the traditional input-output methods. In this study, this problem is addressed by final demand and complete inclusion methods. Thus the employment and production impact of renewable and fossil based energy sectors both for the investment and operation phases are examined. According to the estimation results where all direct, indirect and induced effects are calculated, all of the renewable energy sectors have higher impact in the two methods in terms of both production and employment. It has been observed that this higher potential of renewables applies to both the initial investment and the operational phase. Furthermore, among renewable resources, bioenergy sector is estimated to be one of the first two sectors with the highest potential in all alternative estimations, in regard to unemployment.