Policy implications of renewable energy technology,information and communication technology,and circular economy on employment levels

Abstract

Employment level is vital in measuring an economy's overall health. Thus, economists always search for factors that can promote employment. However, most past studies have considered traditional economic factors as determinants of employment, while ignoring the novel factors such as renewable energy technology, information and communication technology (ICT), and circular economy. To plug this loophole in the literature, the current analysis intends to investigate the influence of renewable energy technology, ICT, and circular economy on employment. We employ the cross-sectionally augmented autoregressive distributed lag (CS-ARDL) framework for empirical investigation of the analysis. In the long-run, renewable energy technology, ICT, and circular economy foster the level of employment. In addition, human capital promotes the level of employment, while inflation lowers the level of employment in long run. In the short run, only human capital favorably influences employment. Policymakers must use renewable energy technology, ICT, and circular economy as policy options to promote employment levels.