From here on, the term 'green' is used to indicate the proposed definition of jobs, and more broadly, to refer to output, technologies, tasks, or skills that contribute to reducing environmental impact. In the subsections that describe a specific measurement approach, 'green' will refer to the specific definition of that subsection.

Accurately identifying green jobs is challenging since a green job involves two different dimensions: the firm and the worker. The firm and worker dimensions complement each other, and both contribute to making a job green. These dimensions sometimes, but not always, overlap.

The _firm-level dimension_ relates to the **output** (goods or services) that the job contributes to producing, and the **technologies** applied to do so. The firm’s environmental footprint naturally relates to the outputs produced. At one end, firms with a negative environmental footprint produce highly polluting or high carbon-intensive outputs (e.g., coal). At the other end, firms with a positive environmental footprint produce environmentally friendly outputs (here on green outputs or environmental goods and services, EGS) (e.g., solar panels). Green outputs include those that may have carbon-intensive production processes but still contribute to the greening of the economy (e.g., a firm manufacturing electric cars). In the middle, there might be firms that have a neutral environmental footprint, with zero or low carbon-intensive outputs (e.g., a leasing firm). In addition to the firm’s output, the job may be performed at a firm that intentionally utilizes technologies<sup>7</sup> to reduce its own environmental footprint. These are usually referred to as green or environmental technologies. The adoption of green technologies could be triggered by different objectives: increasing profits, compliance with regulations, social responsibility, accessing new market opportunities, or raising consumer awareness on climate change issues (e.g., a paperless office or a firm reducing hazardous waste in the environment).

The _worker-level dimension_ , instead, relates to the **task-content** of the job and the **skill requirements** to perform it well. Following Acemoglu and Autor (2011), “[...] _a task is a unit of work activity that produces an output. In contrast, a skill is a worker’s endowment of capabilities for performing various tasks. Workers apply their skill endowments to tasks in exchange for wages, and skills applied to tasks produce output.”_ The technological feasibility and the economic cost ultimate determine the combination of capital and skills into tasks that will produce output. This dimension considers whether the job entails carrying out specific tasks that aim to lessen the environmental impact either by contributing to the production of green products and services, or by reducing the firm’s environmental footprint. It also examines the skills required and whether they involve specific knowledge or abilities related to the environment.

# **Figure 2. Approaches to measure green jobs in terms of their relationship with the production function.**

> spectrum approach to identify core green, indirectly green, and non-green occupations across different sectors and geographies. This paper proposes a narrower definition that comes close to what ILO and ASEAN refer as core green occupations. It is consistent with the range of activities that ILO considers as green jobs (see Figure 1 of ASEAN and ILO 2021).

> 7 Eurostat (2009) defines technologies as technical processes, installations and equipment, and methods or knowledge, the nature or purpose of which is environmentally friendly.

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