Education Quality, Green Technology, and the Economic Impact of Carbon Pricing

This paper assesses the link between human capital, emission and technological change, using OECD data on employed individuals’ cognitive skills as well as industrial emissions. The findings demonstrate that higher levels of cognitive skills are associated with employment in industries that rely less on emissions. In addition, those industries have been able over time to reduce their reliance on emissions for production. The study provides evidence that across OECD countries less emission-intensive industries require more highly skilled workers – thus investments in education are critical to better enable the uptake of green technologies.