1. In the introduction phases of an array of new renewable energy and energy efficiency technologies, these technologies are not fully developed and consequently more expensive per kWh. Such extra innovation cost per energy unit in the introduction phase can often be close to zero seen from a societal point of view in a period of unemployment, when the societal opportunity costs of labour are close to zero. A period with high unemployment rates therefore represents a unique chance of
“free innovation” of new energy technologies.
2. In the general transition period moving away from fossil fuel and uranium technologies, there must be extra investments in the sustainable energy technologies compared to a continuation of the existing fossil fuel and nuclear technologies. Meanwhile, these extra investment costs are, due to the high employment share in the sustainable energy scenarios, considerably reduced in a period of unemployment, as labour in a period of unemployment has very low opportunity costs seen from a societal point of view.
3. On a long-term basis, the sustainable energy scenarios have lower costs per energy unit, partly due to cost reduction because of technological development of the energy technologies and due to the increasing scarcity and thus increased prices of fossil fuel and uranium technologies. Therefore, the direct employment effects of jobs in the energy sector on a longterm basis might be reduced, and the indirect employ- ment effects increased, due to lower energy prices and there- fore an increased ability to compete on the international market, in the RE/energy conservation scenarios.