The impact of environmental regulation on employment: an empirical study of China’s Two Control Zone policy

Sun, Wenli; Yang, Qin; Ni, Qing; Kim, Yoomi

doi:10.1007/s11356-019-05840-5

Cited by 42 publications

(22 citation statements)

References 10 publications

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“…Compared to ordinary regression (e.g., ordinary least square method), the DID method could divide the whole sample into the treatment group and the control group, and clearly identify the difference between the treatment group and the control group before and after the policy [ 67 ]. Therefore, the basic regression model in our study is constructed as follows [ 68 , 69 , 70 ]:

where

refers to the financing constraints of firm i at time t. We use the Size-Age index (hereinafter referred to as SA Index) to measure

based on the current previous literature [ 71 , 72 ], and the calculation formula of the SA index is (−0.737 × Size) + (0.043 × Size 2 ) − (0.040 × Age), where Size is the log of total assets and Age is the number of years the enterprise has been listed. The higher the SA index, the more serious the financing constraints are.…”

Section: Methodsmentioning

confidence: 99%

Does Environmental Policy Help Green Industry? Evidence from China’s Promotion of Municipal Solid Waste Sorting

Chen

Wang

Wen

et al. 2021

IJERPH

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As municipal solid waste severely threatens human health and the ecological environment, since 2019, China has started to fully practice MSW sorting in all prefecture-level cities. In this paper, we apply the event study and difference-in-difference methods to investigate how China’s green policy of promoting MSW sorting influences listed waste sorting companies from the perspective of investors’ short-term and long-term reactions. This paper finds that investors are not sensitive to the introduction of MSW sorting in the short term, the new environmental policy does not relieve the financing constraints of related enterprises in the long run, and the financing constraints of private enterprises are stricter than those of state-owned enterprises. These findings indicate that China’s current encouragement of garbage sorting is not efficient enough as it has not brought benefits to the waste classification industry yet. More measures need to be taken to eliminate uncertainties in urban waste sorting. Our paper enriches the research on China’s waste sorting practices and provides new evidence of the effects of environmental policy on related firms from the perspective of green industry.

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where

refers to the financing constraints of firm i at time t. We use the Size-Age index (hereinafter referred to as SA Index) to measure

Section: Methodsmentioning

confidence: 99%

Does Environmental Policy Help Green Industry? Evidence from China’s Promotion of Municipal Solid Waste Sorting

Chen

Wang

Wen

et al. 2021

IJERPH

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“…Can environmental regulation affect employment? Some studies conclude that it can [10]. The implementation of environmental regulation inevitably impacts many industries, which causes fluctuations in employment demand.…”

Section: Literature Reviewmentioning

confidence: 99%

“…However, there is still debate whether environmental regulation can affect employment. On the one hand, Sun et al [2] show that environmental regulation leads to the movement of labor from big cities to small ones, which improves the employment rate of the first and third industries of small cities. Porter's hypothesis highlights that appropriate environmental regulations may improve international competitiveness, stimulate technological progress, and improve resource allocation efficiency [3] [4].…”

Section: Introductionmentioning

confidence: 99%

Intensity of environmental regulation and environmentally biased technology in the employment market

Song

Xie

Wang

et al. 2021

Omega

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Due to the lack of an appropriate method to measure biased technological progress, the theory of how environmental regulations affect employment demand through biased technological progress in Porter's hypothesis has not been effectively verified. To fill this gap, this study extends Acemoglu's (2012) biased technological progress theory, and reasonably measures environmentally biased technological progress using data envelopment analysis. The effect of environmental regulation on labor supply and demand is analyzed through environmentally biased technological progress. The results show that progress in environmentally biased technology can promote the supply and demand of regional labor force. However, if the development of energy saving and emission reduction technology is inconsistent with economic growth, then progress in environmentally biased technology has a negative impact on the demand for regional labor. Environmental regulation has a significant negative impact on labor demand, but its self-adjusting mechanism reignites labor demand.

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“…They found that the increase of environmental governance intensity was the most disadvantageous for migrant workers. Sun and Yang (2017) used the double difference method to analyze the relationship between the "two control zones" policy and employment, and found that the implementation of the "two control zones" policy was not conducive to the improvement of the overall employment level of the city. (The "two control zones" policy belongs to a means of environmental governance and is an exclusive term in the field of environmental protection.…”

Section: Literature Reviewmentioning

confidence: 99%

Environmental governance and employment effects: An empirical research based on mediating effect model

Jian¹,

Ji²,

Wang³

2018

Afr. J. Environ. Sci. Technol.

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In recent years, the problem of large-scale production suspension of domestic enterprises and unemployment of laborers brought about by environmental governance is becoming increasingly serious. How to reduce the negative externalities of environmental governance has become an urgent practical problem that needs to be solved. Based on the Cobb-Douglas production function model, this paper introduced the mediating effect model with technological innovation as the intermediate variable to study the impact of environmental governance on employment. We chose Beijing-Tianjin-Hebei and surrounding areas with serious pollution as research objects, and used the panel data from 2005 to 2015 for empirical test. The results show that environmental governance has a positive effect on employment, and the high-intensity environmental governance will stimulate technological innovation, thereby stimulating employment growth. In the process of environmental governance, decision-making departments can not only effectively control environmental pollution by promoting technological innovation, but also reduce unemployment caused by environmental governance.

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The impact of environmental regulation on employment: an empirical study of China’s Two Control Zone policy

Cited by 42 publications

References 10 publications

Does Environmental Policy Help Green Industry? Evidence from China’s Promotion of Municipal Solid Waste Sorting

Does Environmental Policy Help Green Industry? Evidence from China’s Promotion of Municipal Solid Waste Sorting

Intensity of environmental regulation and environmentally biased technology in the employment market

Environmental governance and employment effects: An empirical research based on mediating effect model

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