The Cost of Blue Sky: Impact of Environmental Regulation on Labor Demand in...

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Interdisciplinary South 1113

900 University Avenue

University of California, Riverside

Riverside, CA 92507

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THE COST OF BLUE SKY: IMPACT OF ENVIRONMENTAL REGULATION ON LABOR DEMAND IN CHINA

by Bing Zhang, Professor of Environmental Governance and Policy Analysis, Nanjing University

ABSTRACT

The impact of environmental regulation on labor demand is an important issue and has been widely discussed in developed countries. In this paper, we use two enterprise-level data sets – China’s Environmental Statistics Database (2000-2007) and China's Industrial Enterprise Database (2000-2007) to examine the impact of environmental regulation on pollution reduction and labor demand of manufacturing enterprises. We find that manufacturing enterprises facing the tougher environmental regulation decreased their SO2 emissions by roughly 15% relative to non-treated enterprises in the matched control group. In addition, the tighter environmental regulation significantly reduced labor demand on the order of 3-6%. Furthermore, we find heterogeneous impacts of the new regulation by type of enterprise ownership, age and industry. More specifically, we found that environmental regulation has greater negative effects on employment in domestic privately owned enterprises and old enterprises.

SPEAKER BIO

Dr. Bing Zhang is a professor of environmental governance and policy analysis at School of Environment and School of Government at Nanjing University. He is also the director of Center for Environmental Management and Policy Analysis which is supported by Nanjing University and Jiangsu Environmental Protection Department. He holds a doctorate in Environmental Planning and Management from Nanjing University and Rutgers University. His research focuses on environmental governance system in China. He examines detail regulation design on regulating pollution and GHGs in China, as well as its impacts on industrial competitiveness, structure dynamic and social welfare.




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Interdisciplinary South 1113

900 University Avenue

University of California, Riverside

Riverside, CA 92507

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