Evaluation of employment effects during the transition of the Chilean energy system

Net employment impact is one of the key socioeconomic footprints to measure the efficacy of the energy transition. However, these kinds of analyses have been less discussed in scientific literature. Based on this shortcoming, this paper presents the first study that estimates direct jobs creation corresponding to the value chain across power, heat, transport and desalination sectors at a sub-national resolution, for two different energy transition scenarios from 2020 to 2050 across Chile. Here, we adapt the employment factor approach to the case of Chile in order to compare a current policy scenario for reaching carbon neutrality by 2050 with a fully defossilised best policy scenario. Results reveal that the transition towards a 100% renewables-based energy system in Chile would create 351,400 more direct energy jobs than the government's official scenario for achieving carbon neutrality by 2050. We conclude that, the transition scenario to reach a fully defossilised energy system in Chile by 2050, in addition to being more cost-efficient than the current policy scenario from 2035 onward and can reach carbon neutrality by 2030, would also result in more socioeconomic benefits. The understanding of socioeconomic impacts of transition scenarios can help to accelerate the energy transformation that is needed for achieving international climate targets. • First study presenting direct energy jobs estimates at a subnational level. • Adaptation of the employment factor approach for local conditions in Chile. • Net employment impacts of two energy transition scenarios for Chile analysed. • A fully defossilised scenario creates 351,360 more jobs compared to less ambitions. • Solar PV is the technology that will create most jobs during the energy transition.