Employment and the environment: some reflections

The debate concerning the impact of growing environmental awareness and the consequences which associated socio-economic change may have on the labour market has developed rapidly in recent years. At one extreme, are those who believe that investments in environmental activities are capable of generating hundreds of thousands of new jobs at the national level. The other end of the scale predicts massive job losses if European industry alone has to bear the burden of enlightened environmental policies. Latterly, the notion of a "double dividend" has emerged partly as an attempt to reconcile these two scenarios. Proponents of the "double dividend" contend that by reducing employment "taxes", such as social insurance contributions, any short run cost implications stemming from more effective environmental control regulations can be wholly offset. Thus, theoretically at least, the "double dividend" offers a constructive way forward for policy makers and social partners to integrate the seemingly divergent pressures for job creation and a healthier and more sustainable environment. This article reflects on the contributions made to a special conference organised by the IRENE network in January 1996. The conference examined theoretical perspectives and empirical evidence concerning the employment and environmental debate.