System Dynamics Modeling of Green Employment Outcomes Driven by Climate Finance in Ethiopia’s Green Economy Transition
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Date
2025-06-10
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A.A.U
Abstract
This study examines the changing interaction between climate finance, green job market, and labor
productivity as a result of Ethiopia’s green economy transition. The research adopts a system dynamics
modeling technique to establish a consolidated structure for running various simulations of the climate
finance sources—public, private, foreign, and green bonds—which co-exist with TVET, labor market,
and GHG emissions. The simulation not only examines possible scenarios of policy but also explores
the extent to which interventions have been targeted that include the growth of public-private
partnerships, issuing of green bonds in phases, and the allocation of funds for skill development, thus
helping the creation of green jobs and the development of low-carbon economy. The findings show
that a well-timed and well-managed climate fund can provide employment opportunities on a large
scale while still meeting the goals of emission reduction. Still, the degree of success of these events
depends largely on the changes in productivity and the power of institutions to absorb investments in
a proper manner.