Social Protection of Self-Employment from an Economic Perspective

Abstract

This article examines how climate change and climate mitigation policies are reshaping traditional social security risks—such as sickness, disability, and unemployment—and placing growing pressure on the financial and normative foundations of the European welfare state. Drawing on a synthesis of scientific evidence and comparative experiences, the analysis focuses on three interrelated areas: first, the effects of extreme climate events on health, employment, and public finances; second, the slow-onset impacts of climate change on livelihoods, productivity, and economic stability; and finally, the distributive effects of decarbonisation, particularly job losses in carbon-intensive sectors and the exacerbation of energy poverty. The article shows how the combination of different social protection instruments—ranging from social security benefits and services to adaptive social protection approaches—together with the new mechanisms developed at the European Union level, can mitigate these shocks while supporting a transition towards an ecosocial welfare state.