上海财经大学经济学院
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872期 4月3日 :【“中国经济:理论与政策”系列讲座】Who Bears the Costs of ”Blue Sky”: The Impact of Environmental Regulation on Labor Demand in China(张炳, 教授,南京大学)

【主讲】张炳 (教授,南京大学)

【主题】【“中国经济:理论与政策”系列讲座】Who Bears the Costs of ”Blue Sky”: The Impact of Environmental Regulation on Labor Demand in China

【时间】2018年4月3日 (周二) 10:00-11:30

【地点】上海财经大学经济学院楼701室

【语言】英文

【摘要】The impact of environmental regulation on labor demand has been thoroughly discussed in the context of developed countries. However, in this paper, we examine the impact of a nationwide environmental policy on labor demand in a developing country, i.e., in China’s manufacturing sector, using an estimation technique that pairs Propensity Score Matching (PSM) with a Difference-in-Differences (DID) estimator. Using a ten-year firm-level panel data set (1998-2007), we find that China’s Key Cities for Air Pollution Control (KCAPC) policy effectively lowered SO2 emissions. Manufacturing firms facing stricter environmental regulation decreased their SO2 emissions by roughly 23% more than non-treated firms in the matched control group. More importantly, the new environmental regulation significantly reduced labor demand by approximately 5%. In addition, we find that firms reduced their SO2 emissions mainly by changing ’production processes’ (rather than through ’end-of-pipe’ treatments or production reduction), which may lead to job loss based on substitution effects and that the new regulation had heterogeneous effects depending on workforce skill, firm ownership, and industry. More specifically, low-skilled employees and workers in private-owned firms bear more burden of environmental regulation in China.

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