The relationship of renewable energy to education and employment

In this study, the effect of knowledge stock on the use of renewable energy and the effect of renewable energy consumption on general employment and youth employment rate are investigated. For this purpose, five different econometric models are utilized. The models, which are addressing the relationship between knowledge stock and renewable energy use, are analyzed by panel pseudo Poisson maximum likelihood, fixed effects panel regression and fixed effects panel threshold methods, respectively. Research and development spending, public education expenditures, secondary and tertiary school enrollment ratios are chosen as the indicators of social knowledge stock. The results show that the research&development spending is positively correlated with the use of renewable energy regardless of the economic development of the countries. On the other hand, public education expenditure has a threshold effect at 7.48 %. The findings also suggests that increased enrollment ratios are positively related to renewable energy participation. Furthermore, the positive impact of education is found to be stronger at higher education levels. On the other hand, the model to estimate the employment effect of renewable energy use is analysed by common correlated mean group effects approach. Estimation results revealed the negative relationship between employment of renewable energy and employment. However, it can be said that transition to renewable energy is more adversely affects youth employment compared to the general employment of the economy.