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Does Environmental Regulation Have an Employment Dividend? Evidence from China

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  • Chao Wu

    (School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China
    School of Economics, Fudan University, Shanghai 200433, China)

  • Yu Hua

    (School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

Abstract

Environmental regulations not only benefit environmental improvement but may also have a potential employment dividend, which is important for sustainable economic development. Based on the provincial panel data of China from 1997 to 2019, the spatial Dubin model is used to analyze the spatial spillover effects of environmental regulation on employment. From the findings, there is a significant spatial agglomeration characteristic in the employment scale. The environmental regulation positively influences the local employment scale, while there is a negative spatial effect on employment in neighboring regions. With regards to the regional heterogeneity analysis, environmental regulation has a spatial negative correlation with employment in coastal areas and less polluted areas. Additionally, in inland areas and less polluted areas, environmental regulation has a significant positive impact on the employment scale. Meanwhile, market-based environmental regulation has the potential to expand the employment scale in local and neighboring areas, while command-and-control environmental regulation impacts negatively on employment in neighboring areas. This study found that environmental regulation has an employment dividend. These findings reveal the spatial dependence between environmental regulation and employment, which will help policy makers consider the environmental and employment effects of environmental regulation more comprehensively. Therefore, the government should formulate targeted policies under regional differences to promote high-quality employment and construct a multiple governance environmental regulatory system.

Suggested Citation

  • Chao Wu & Yu Hua, 2023. "Does Environmental Regulation Have an Employment Dividend? Evidence from China," Sustainability, MDPI, vol. 15(7), pages 1-20, April.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:7:p:6307-:d:1117458
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    1. Chocholatá Michaela & Furková Andrea, 2023. "Spatial Heterogeneity and Spillovers of Employment in the EU Regions," Zagreb International Review of Economics and Business, Sciendo, vol. 26(2), pages 163-182.

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