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The Effect of Environmental Performance on Employment: Evidence from China’s Manufacturing Industries

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  • Wei Shan

    (School of Economics and Management, Beihang University, Beijing 100191, China
    Key Laboratory of Complex System Analysis and Management Decision, Ministry of Education, Beijing 100191, China)

  • Jingyi Wang

    (School of Economics and Management, Beihang University, Beijing 100191, China)

Abstract

This research aims to explore the interaction between environmental performance and employment China’s manufacturing industries. Based on the environmental performance of 32 industries in China’s manufacturing industry during 2006–2015, a panel vector autoregressive model was constructed to study the interaction between industry output and employment in clean industries and dirty industries. The dynamic impact and internal transmission mechanism between environmental performance is analyzed. The study found that in the early stage, due to the reduction of production scale, there was a weak and short-term negative correlation effect on employment, and the mutual promotion relationship between economic benefits and employment was unsustainable. In return, employment affects environmental performance, but the effect differs due to the different forms of environmental performance. For dirty industries, the impact of environmental performance on employment through technical effects is more significant and, thus, a win–win situation of ecological environment and employment stability will be achieved. This research has practical significance regarding how to scientifically and effectively carry out environmental regulation and green management.

Suggested Citation

  • Wei Shan & Jingyi Wang, 2019. "The Effect of Environmental Performance on Employment: Evidence from China’s Manufacturing Industries," IJERPH, MDPI, vol. 16(12), pages 1-18, June.
    • Handle: RePEc:gam:jijerp:v:16:y:2019:i:12:p:2232-:d:242601
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    2. Jiayue Liu & Jing Xie, 2020. "Environmental Regulation, Technological Innovation, and Export Competitiveness: An Empirical Study Based on China’s Manufacturing Industry," IJERPH, MDPI, vol. 17(4), pages 1-19, February.
    3. Kai Wang & Menghan Wang & Chang Gan & Mihai Voda, 2019. "Residents’ Diachronic Perception of the Impacts of Ecological Resettlement in a World Heritage Site," IJERPH, MDPI, vol. 16(19), pages 1-17, September.
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    5. Xiaoyang Xu & Muhammad Imran & Muhammad Ayaz & Sonia Lohana, 2022. "The Mediating Role of Green Technology Innovation with Corporate Social Responsibility, Firm Financial, and Environmental Performance: The Case of Chinese Manufacturing Industries," Sustainability, MDPI, vol. 14(24), pages 1-20, December.
    6. Xu Dong & Yali Yang & Qinqin Zhuang & Weili Xie & Xiaomeng Zhao, 2022. "Does Environmental Regulation Help Mitigate Factor Misallocation?—Theoretical Simulations Based on a Dynamic General Equilibrium Model and the Perspective of TFP," IJERPH, MDPI, vol. 19(6), pages 1-21, March.

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