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Installation, maintenance in renewable energy will create jobs, even as energy transition poses challenges.

COP28 emphasised that transitioning from fossil fuels in energy systems is required in a just, orderly and equitable manner. The path of decarbonisation requires shift to low-carbon options. Demand-side management measures like production and supply chain adaptation or improving energy efficiency are not sufficient to reduce energy requirement.

However, the social and economic transformation required to facilitate the green transition will inexorably bring in change in the labour market.

Currently, India’s share of renewables in power generation is only 12 per cent (as of February 2023), and coal is still the dominant source of energy for power generation (73per cent in 2023). Energy is one of the key sectors in India, which is inter-linked with almost all other sectors. It is used as an input to all the sectors in manufacturing, services and also is an important input in the agriculture sector.

It itself receives inputs from several manufacturing and services sectors. So, the effect of energy transition would not be just limited to energy sector alone, but also would have impact on other sectors in the economy which provide input to the energy sectors.

NCAER’s study finds that direct and SAM (Social Accounting Matrix) employment multiplier for solar power generation is higher than coal, and comparatively less for wind for India. This means that to produce the same amount of output in monetary terms, generation of solar power requires employment of more workers as compared to coal, while wind power requires comparatively smaller number of workers.

New jobs

As we shift away from ‘brown’ energy sources for power generation, there would be reduction in employment in coal sector, while adaptation of ‘green’ energy would pave the way for employment in renewable energy sectors like solar or wind. And this employment, would not only be created in operation and management of power plants, which was captured in earlier multiplier estimates, but also for manufacturing and installation of new renewable power plants.

Estimates show that in India too, renewable energy sources, especially solar power have substantial potential for employment generation in manufacturing and installation. While the jobs related to O&M are generally of longer duration, nature of employment for manufacturing and installation of power plants can be transient in nature, concentrated at the beginning of the power plant’s life span.

The requirement of skills would also differ across technologies. Odisha, where coalmining sector is a source of livelihood to many low-skilled and unskilled labours, needs to generate appropriate jobs for people losing livelihood in the process of transition. There is major concern that the jobs generated in India for renewable sources are generally low-skill jobs and there is not much job generated for high-skilled workers in manufacturing and installation.

One important fact that we need to remember here that India is highly dependent on imported goods for manufacturing of renewable power plants. For example, India imported solar cells, assembled in modules or made up into panels worth $3,363.20million and wind mill, wind turbine and engines worth $0.07 million in 2021-22. If domestic production of these commodities are encouraged, it can be a significant contributor to employment generation. However, the impact of the adoption of green fuels will have different impact on different States. For example, only 0.15 per cent of usually working persons as defined in Periodic Labour Force Survey 2021-22 in Kerala in engaged in mining and quarrying while 1.10 per cent of Odisha is engaged in that sector.

Transition to green energy will impact employment in the mining sector and States which are dependent on mining as a source of revenue and employment, would be affected more as compared to those which are not that much resource-intensive.

 State sops

The government, in 1952, introduced Freight Equalisation Policy (which was in place till 1993), to promote balanced regional development. Under that policy, the Centre was subsidising the transportation of ‘essential’ items which included coal, steel and cement among others, from resource-rich States to resource-deficit ones.

Coastal States like Maharashtra, Tamil Nadu and Gujarat benefited from this step and resource-rich States like Madhya Pradesh, West Bengal, Bihar (now Jharkhand) or Odisha lost some of their competitive advantage. Now, when coastal States have the advantage with wind and some States are more endowed with longer daytime for production of solar energy, policies need to support the States which lack such resources or infrastructure. Land availability is a major challenge of wide scale implementation of renewable energy projects, especially for States like Kerala. Land acquisition can also disrupt ecology and biodiversity.

It is also important to note that lifespan of renewable energy power plants is less (approximately 30 years for PV module or 20 years for wind-based power plants) as compared to fossil fuel-based power plants (40 years for coal). This would require replacement of PV solar panels or wind turbines more frequently as compared to fossil-fuel-based power plants; thus, generating more employment in manufacturing and installation of renewable power plants.

But a recent paper by Heather Mirletz and colleagues, published in Nature Physics estimates that due to shorter lifespan, globally, the solar waste generation would amount to 54 to 160 million tonnes between 2016 and 2050, resulting in huge quantities of dumped panels.

Wind turbines which are generally 170 feet long, are also mostly dumped (and not recycled in practice) after its lifetime, and are going to add 43 million tonnes of blade waste by 2050 globally, a study by Liu and Barlow estimates. India needs to be prepared for the social and environmental consequences of the offtake of renewable energy sources.

Dr Sanjib Pohit is Professor at NCAER and Chetana Chaudhuri is Fellow at NCAER. Views expressed are personal.

The attention the archipelago is receiving must be leveraged through strategic marketing campaigns, both by government and private stakeholders.

Lakshadweep, a uni-district and the smallest Union Territory of India, is getting attention like never before after Prime Minister Narendra Modi posted pictures of his “exhilarating experience” during his visit to the UT, early this month. In a matter of four days, there has been a jaw-dropping rise of 3400% in Lakshadweep searches on travel sites; “Lakshadweep” became the 10th most searched word on Google in India; and the worldwide search for Lakshadweep was the highest in the last 20 years.

What else do we know about Lakshadweep? Formed in 1956, Lakshadweep, meaning a hundred thousand islands, is an archipelago of 36 islands, of which only 10 are inhabited with a population of about 64,473 as per the 2011 census. Despite a very small population, the region showcases a harmonious coexistence of diverse customs and practices. Malayali Muslims form the majority, contributing to the cultural mosaic with their language, cuisine, and religious traditions.

Little can be stated about its economy. No official Gross State Domestic Product (GSDP) statements are available for the island. It might be contributing a small fraction to the country’s GDP. But what is known is that its economy revolves around fisheries, coconut cultivation, and tourism, thanks to the archipelago’s pristine coral reefs, clear blue waters, and tranquil landscapes. The local administration has been making efforts to promote sustainable tourism, striking a balance between economic development and environmental conservation.

So far, both domestic and international tourist arrivals to Lakshadweep, as per the ministry of tourism’s India Tourism Statistics, have been extremely meagre. The UT hosts just about 10,000 domestic and less than a thousand international tourists each year. Despite this, tourism is a significant contributor to the UT’s economy. According to a report by the National Council of Applied Economic Research (NCAER) on Lakshadweep’s Tourism Satellite Account, which estimated tourism economy in terms of both GDP and employment, tourism contributed 4.3% to the UT’s GDP and a sizeable 22% to its employment in 2015-16. This is much above the national average of 2.8% and 5.4% , respectively for the same year. Any escalation in the number of tourists to the UT can give a significant boost to not just its tourism economy but also to its overall economy, not to mention the strong multiplier effect of tourism.

The recent spat with Maldives has already served as a catalyst to increasing its visibility and promoting it as a sought-after tourist destination. The media coverage and publicity surrounding the PM’s trip would naturally generate widespread interest and curiosity among the general public. This heightened attention should be leveraged through strategic marketing campaigns, both by the government and private tourism stakeholders.

The need of the hour is to focus on the supply side of tourism in order to meet the growing tourism demand. The supply side refers to the tourism-supplying industries like accommodation, transportation, restaurants, recreation, culture, and more.  Lakshadweep needs to be developed as a tourist destination. This very much falls in line with the government’s agenda to develop 50 new tourism destinations across the country, with a focus on green tourism.

Destination development with strategic planning must be the  focus to improve or augment the supply -side of tourism when the demand side is expected to flourish. Such planning is expected to provide compelling experiences, quality infrastructure, and remarkable services to entice repeat visitation by the tourists.

Beyond the current lodging and hotel options, the Tata Group has recently declared its intention to establish two luxurious resorts by 2026 on the islands of Suheli and Kadmat in Lakshadweep. These forthcoming Taj resorts are poised to become world-class destinations, catering to both international and national tourists.

Regarding its comparison with Maldives, Lakshadweep may turn out to be a preferred destination for more reasons than have been highlighted in social media. Its geographical proximity to the Indian subcontinent, merely 500 km away from the southwestern coast, makes it easily accessible and potentially cost-effective destination. It offers a unique, less explored, and offbeat experience. With thoughtful planning, sustainable practices, and the allure of untouched beauty, Lakshadweep has the potential to emerge not only as a sought-after tourist destination but also as a beacon of responsible tourism, balancing growth with environmental conservation.

Poonam Munjal & Palash Baruah, respectively, professor and associate fellow, National Council of Applied Economic Research (NCAER). Views are personal.

If universities are to remain home to creativity, they must embrace both radical thinking and scepticism toward received wisdom. This is important not just for humanities and social science but also for science and engineering.

In recent weeks, two American university presidents, Claudine Gay from Harvard and Liz Magill from the University of Pennsylvania, resigned from their positions after evasive responses during a testimony at a Congressional hearing on anti-Semitism on campuses following the October 7 attack by Hamas in Israel. President Magill from the University of Pennsylvania explicitly condemned anti-Semitism as well as Islamophobia, but still, she came under fire for refusing to relieve a professor who led chants for intifada, revolution, that has come to characterise calls for violent protests by Palestinians against the Jewish state. President Gay from Harvard, also under fire, resigned voluntarily to protect the institution from further controversy.

This incident provides an intriguing insight into the culture wars of 21st century America while offering a cautionary tale for other nations seeking civil discourse about difficult issues. Freedom of expression is enshrined in the American Constitution and is often taken to an extreme where the individual right to carry guns or to burn the American flag is hotly defended. Nonetheless, as this incident shows, this freedom is under considerable threat, a threat that is not limited to the present controversy.

In the cases of Harvard and Pennsylvania, this threat came under the guise of creating a safe space for Jewish students, accompanied by the financial clout of donors and alums. But it is not simply the power of donors that has generated such a powerful backlash. We also see a similar desire to avoid controversy and protect the sensibilities of diverse communities in other cases.

For example, the dismissal of Professor Erika López Prater from Hamline University for actions deemed Islamophobic. Her crime? She showed an image of a 14th century painting depicting Prophet Mohammad in a course in global art history. A student in her class complained that the pictorial depiction of the Prophet was against religious diktats, and it made him feel disrespected. The administration took the side of the student, and the New York Times reported Hamline’s president, Fayneese S Miller, as having sent an email that said respect for the Muslim students “should have superseded academic freedom.”

Moderating or censoring speech to what in India we term “respecting the sentiments” of some communities is often classified in the US as protecting vulnerable groups from microaggression. In most settings, power still rests in the hands of white men, creating a hostile environment for women and racial or gender minorities. Efforts at identifying behaviours that construe aggression in day-today interactions, often termed microaggression, have gained currency. Redressal usually involves instituting diversity programmes in universities and large businesses. Fareed Zakaria, in a perceptive article, argues that the growth of this DEI (diversity, equity and inclusion) bureaucracy has given rise to a culture of virtue signaling and fed demands from Jewish students for protection from hurtful speech, as other groups have demanded in the past.

And yet, the road to hell is often paved with the best intentions, and diversity initiatives do not always increase diversity. A fascinating study of large businesses by Harvard Sociology Professor Frank Dobbin, published in Harvard Business Review, finds that mandatory diversity training for managers has reduced rather than increased diversity. Blaming and shaming led to the hardening of biases, and diversity training was associated with a reduction in black women managers as well as Asian managers. Moreover, attempts at enhancing comfort and silencing strident debate come at a price.

Modern universities — in the United States and globally — are buffeted by two competing forces. On the one hand, there is a recognition that existing inequalities can create a hostile environment for some students. On the other hand, trying to protect against it can diminish spaces for dissent and debate in institutions designed to foster creativity. Struggling to find a balance between the two, a report of the Committee on Freedom of Expression by the University of Chicago quotes its President Hanna Gray, “Education should not be intended to make people comfortable, it is meant to make them think.”

If universities are to remain home to creativity, they must embrace both radical thinking and scepticism toward received wisdom. This is important not just for humanities and social science but also for science and engineering. Arguably, the most visible example is periodic attempts by various US state legislatures to restrict the teaching of evolution in schools since it is inconsistent with the Christian conception of how the universe was created.

Radical thinking and scepticism towards received wisdom are not readily embraced. They imply not simply accepting ideas we like but also being open to ideas that are not consistent with our other beliefs and social norms or may be hurtful to some segment of our society, whether they are about the right of the state of Israel to displace Palestinians, caste-based reservation or scientific discoveries. Temples of education are not places where ideological battles should be fought. As Claudine Gay notes in an essay in The New York Times, “At tense moments, every one of us must be more sceptical than ever of the loudest and most extreme voices in our culture, however well organised or well connected they might be.”

The writer is a Professor at the University of Maryland and the National Council of Applied Economic Research. Views are personal.