期刊
JOURNAL OF DEVELOPMENT ECONOMICS
卷 150, 期 -, 页码 -出版社
ELSEVIER
DOI: 10.1016/j.jdeveco.2020.102610
关键词
Labor demand; Environmental regulation; Air pollution control; Manufacturing firm; China
类别
资金
- National Natural Science Foundation of China [72004024, 71825005, 71921003]
The study found that China's Key Cities for Air Pollution Control (KCAPC) policy effectively reduced SO2 emissions but also led to a decrease in manufacturing labor demand. Firms mainly reduced pollution emissions through technological progress, resulting in an impact on low-skilled employees and workers in domestic manufacturing firms in China.
To cope with the stricter environmental regulation, manufacturing firms need to carry out pollution reduction activities and change their optimal production decisions, which may affect their labor demand. Using a ten-year firm-level panel dataset (1998-2007), we use an estimation technique pairing propensity score matching (PSM) with a difference-in-differences (DID) estimator to examine the impacts of a national air pollution control policy on employment in China. We find that China's Key Cities for Air Pollution Control (KCAPC) policy effectively lowered sulfur dioxide (SO2) emissions by approximately 26%. The new environmental regulation significantly reduced manufacturing labor demand by approximately 3%. Most importantly, firms reduce pollution emission mainly by upgrading production technology so the decline in labor is partly due to the increase in labor productivity brought about by technological progress. As a result of pollution reduction, low-skilled employees and workers in domestic manufacturing firms are more affected by environmental regulation in China.
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