Public pollution abatement and wage inequality

Pi, Jiancai; Shi, Shenyu

doi:10.1080/09638199.2018.1521464

Cited by 10 publications

(3 citation statements)

References 47 publications

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“…In this section, we will discuss the pollution externality, which means that the production of agricultural products in the rural sector is affected negatively by pollution. Building upon the insights of Pi and Shi (2019), we approach the pollution externality as a phenomenon that poses a threat to the natural environment and inflicts the harm upon the rural sector.…”

Section: Further Discussionmentioning

confidence: 99%

Pollution control and multinational firms

Liu

2023

Int J of Economic Theory

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This paper analyzes how pollution control in the recipient developing country affects the flow of multinational capital owned by multinational firms in the source developed country. We find that when pollution control in a developing country becomes stricter, then the amount of multinational capital flowing into the developing country will certainly or conditionally decrease. Through further welfare analysis, we hope to provide some policy suggestions that will allow the government to guarantee the welfare of the labor force while it implements stricter pollution control.

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Section: Further Discussionmentioning

confidence: 99%

Pollution control and multinational firms

Liu

2023

Int J of Economic Theory

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“…Small firms, polluting firms, and labor-intensive firms are more susceptible to environmental regulation policies (Wang et al, 2019). Empirically, there is no consistent conclusion on the income distribution effect of environmental regulation (Chao et al, 2012;Fan, 2019), and requires sufficient empirical evidence (Pi and Shi, 2018).…”

Section: Introductionmentioning

confidence: 99%

Environmental regulation, abatement strategy, and labor income share

Huang

Zhao

Lan

2022

Front. Environ. Sci.

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Firms need to adopt abatement strategies and change their modes of production and resource allocation under the strict environmental policy, which affects the labor income share. Based on the firm-level data of China’s Industrial Enterprise Database and Pollution Emission Database from 1998 to 2013, this study uses the difference-in-differences framework to test the effects and mechanisms of environmental policy on labor income share with different abatement strategies. We find that the Two Control Zone policy coupled with Environmental Performance Assessment policy (EPA-TCZ policies) in China, significantly increases the labor income share by 2.6% and reduces sulfur dioxide (SO2) emissions. Mechanism analyses further find that firms primarily adopt abatement strategies of source control and end-of-pipe treatments to cope with environmental regulation, and labor income share is enhanced through the factor-substitute effect and the cost effect. As the result of labor income share, low-skilled firms and state-owned firms are more sensitive to environmental regulation. The results from this study provide an empirical basis for the formulation and evaluation of environmental policies in developing countries.

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“…The existing literatures on the important issue of income and wage inequality within a general equilibrium setting with Cournot competition are mainly concentrated in trade liberalization and factor mobility (Beladi et al., 2019; Chao et al., 2019; Liu et al., 2019), governmental behaviors (Crettez & Fagart, 2009; 2018a Pi & Zhang, 2018a, 2018b; Beladi et al., 2018; Beladi et al., 2020; Pi & Zhang, 2020), environment regulation (Pan & Zhou, 2013; Pi & Zhang, 2017; Ee et al., 2018a; Pi & Shi, 2019; Kuo et al., 2021), financial market or capital market (Chao et al., 1993; Bumann & Lensink, 2016; Blau, 2018; Pi & Fan, 2020, 2022; Yu & Chao, 2021a), nontradable goods and service economy (Oladi & Beladi, 2009; 2021b Yu & Chao, 2021b, 2021c), corporate social responsibility (Ee et al., 2018b; Pi & Zhao, 2020), and corporate governance (Chao & Wang, 2022).…”

Section: Introductionmentioning

confidence: 99%

Corporate profit tax, firm entry with unemployment, and income inequality

Wang

Sun

2022

Bulletin of Econ Res

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In this paper, we provide a general equilibrium analysis of corporate profit tax on income distribution, unemployment, and wage inequality. With firm dynamics in industrial sector, we identify a new channel through which profit tax affects income and wage inequality: profit tax cut will widen not only the wage gap between skilled and unskilled labor, but also exacerbate the wage inequality of unskilled labor among different sectors. The welfare effect of profit tax cut depends on unemployment deepening (labor‐distortion effect) and more manufacturing firms enter the market (business‐creation effect), eroding the market share of incumbent firms (business‐stealing effect).

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Public pollution abatement and wage inequality

Cited by 10 publications

References 47 publications

Pollution control and multinational firms

Pollution control and multinational firms

Environmental regulation, abatement strategy, and labor income share

Corporate profit tax, firm entry with unemployment, and income inequality

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