Socio-economic implications of energy transition: the new role of human capital

Abstract

Italy’s energy landscape is undergoing a profound transformation, marked by expanding renewable capacity, fluctuating climatic conditions, and evolving market dynamics. In this context, human capital emerges as a critical driver of a just and effective energy transition. This paper investigates how skills, education, and workforce development shape Italy’s path toward decarbonization, integrating a systematic review of the literature with empirical evidence on green employment and regional disparities. The analysis highlights that while Italy is advancing in renewable deployment and energy market integration, a persistent gap between labor supply and the skills demanded by emerging green sectors risks constraining progress. Significant territorial imbalances further amplify these challenges, revealing uneven capacities across regions to adapt and benefit from the transition. The findings highlight the need for integrated policies on education, reskilling, and labor inclusion to reinforce human capital and support a fair and sustainable energy transition.