Enabling Skills for Transitions to a Green Economy

The transition to a green economy requires a workforce with the right (green) skills but what is "right" and how to get it "right" for different regions, industries, and businesses is less well understood. For most businesses (that will not invent green technologies and processes), adoption and diffusion of green technologies and processes are crucial. The skills required for this adoption may differ considerably from those used in technology development. The evidence on local green skills and the impact of any shortages is much limited with no systematic evidence on how businesses interact with local labour markets to bring in these green skills. The proposed project will contribute to the currently limited academic research to answer questions on the availability of green skills, the impact of green skill shortages on regional green transitions and the policy options to address shortages and facilitate transitions. The project will be a joint studentship between Aston University and the University of Birmingham, bringing together the expertise of academics from different backgrounds.

The project will explore the current state-of-the-art on i) demand and supply of green skills, ii) how jobs and local labour markets are affected by skills shortages and iii) what green skills policies have been implemented in different countries and regions. It will use large micro-datasets in combination with advanced econometric techniques to estimate the level of green jobs and the demand for green skills in UK regions and contrast them to the supply of green skills. This analysis will determine what are the shortages (if any) in different subnational spatial scales (different regions within the UK). Econometric modelling will explore the consequences of such shortages at firm level and understand the individual and firm characteristics for upskilling. Qualitative evidence (interviews and focus groups) will deepen our understanding of these issues. Such qualitative methods enable insights into employers' decision-making and priorities and answer 'why' they behave as they do in addressing skills deficiencies.

The project's empirical findings will inform policy making decisions at the local and national level to help bridge green skills gaps. It will integrate findings with an analysis on skills policies to provide an overview of policy options for enhancing local green skills and evaluate the practicalities of applying these policies in the UK. Of particular importance will be the maintenance of inclusive growth in poorer parts of the UK, suggesting effective policies that promote prosperity.