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The Impact of Accountability for Energy Efficiency Targets on Labor Demand of Enterprises: Evidence from China’s Top-1000 Energy-Saving Program

Author

Listed:
  • Yiwen Yu

    (School of Economics, Shanghai University, Shanghai 200444, China)

  • Lili Ding

    (Landscaping and City Appearance Administrative Bureau of Minhang District, Shanghai 201199, China)

  • Yongyou Nie

    (School of Economics, Shanghai University, Shanghai 200444, China)

  • Yun Pan

    (School of Environmental and Chemical Engineering, Shanghai University, Shanghai 200444, China)

  • Zheng Jiao

    (School of Environmental and Chemical Engineering, Shanghai University, Shanghai 200444, China
    Radiological Application Research Institute, Shanghai University, Shanghai 200444, China)

Abstract

To control energy consumption, China issued the environmental regulation policy of the Top-1000 Energy-Saving Program in 2006, and it remains to be examined whether this policy will impact enterprises’ labor demand while promoting energy conservation and consumption reduction. Based on the panel data of Chinese enterprises (2000–2010), this study employs the difference-in-differences (DID) method to investigate the impact of the Top-1000 Energy-Saving Program on the labor demand of enterprises. It is found that the policy significantly reduces enterprises’ labor demand, a finding that passes several robustness tests. Second, the effects of the policy show heterogeneity across enterprises of various sizes, ownership structures, and regions. Finally, the mechanism analysis verifies the existence of an output effect leading to a decline in enterprises’ labor demand, while the substitution effect manifests itself in the substitution of enterprises’ labor demand with the increase of capital and technological innovation. This study provides important empirical evidence for the improvement of energy efficiency policies.

Suggested Citation

  • Yiwen Yu & Lili Ding & Yongyou Nie & Yun Pan & Zheng Jiao, 2024. "The Impact of Accountability for Energy Efficiency Targets on Labor Demand of Enterprises: Evidence from China’s Top-1000 Energy-Saving Program," Sustainability, MDPI, vol. 16(21), pages 1-19, October.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:21:p:9447-:d:1510414
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    References listed on IDEAS

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