Ripple effects of coal phaseout on employment in China: From mining to coal consumption sectors

Abstract

China's stringent decarbonisation, marked by an uncompromising coal phaseout, has induced significant ripple effects across the coal industry chain's employment structure. By utilising a composite methodology that integrates the Global Change Assessment Model and Input‒Output Model, this study systematically quantifies the impact on employment, revealing a loss of 1.6 million jobs in mining and 8.2 million in the entire chain. Concurrently, a labour shift to the renewable sector has resulted in an 18.5% increase in employment, equivalent to creating 508,000 new positions from 2017 to 2020. Projections suggest that renewable energy initiatives could address 25% of the employment gap for precision by 2060 under carbon neutrality scenarios. Nonetheless, the coal sector is expected to lose more than 20 million jobs, indicating the need for a 2.3 trillion-yuan compensation fund. This study highlights the need for policy interventions to facilitate labour transitions through comprehensive retraining programs and strategic investments. Promoting economic diversification and clean coal technologies can improve resource utilization and create new jobs. Additionally, repurposing abandoned coal mines into energy storage facilities or renewable energy sites can prevent stranded assets and generate employment. These findings provide a robust framework for addressing the socioeconomic challenges of energy transitions, offering critical insights for other coal-dependent countries aiming for sustainable development.