Labor Market and Ecological Implications of the Shift from Fossil Fuels to Renewable Energy: A Systematic Literature Review

Abstract

The global transition from fossil fuels to renewable energy is reshaping labor markets while simultaneously offering significant environmental benefits. This study provides the first Systematic Literature Review (SLR) that integrates evidence across diverse geographic contexts, a broad range of renewable energy technologies, and multiple labor market outcomes, including job creation, job quality, skills development, and distributional effects, while explicitly incorporating associated environmental co-benefits and trade-offs. The review assesses key labor market implications of the energy transition, including sectoral employment shifts and workforce reskilling needs. The findings indicate that renewable energy deployment generally leads to net job gains, particularly in solar, wind, and hydropower sectors, and supports more inclusive labor market opportunities, including marginalized groups. However, the distribution of these gains remains uneven across regions, with fossil fuel–dependent areas facing employment risks and requiring targeted support. Beyond the socioeconomic dimension, the review shows that the expansion of green jobs contributes to broader sustainability goals by reducing carbon emissions, improving air quality, and enhancing ecosystem resilience. The study further highlights the critical role of education systems, skills development, and policy instruments, such as carbon pricing and local employment incentives, in enabling a just and environmentally restorative energy transition.