Does the Clean Air Action Really Affect Labor Demand in China?

Boqiang Lin, Zhensheng Li

Source Title: Journal of Global Information Management (JGIM)30(6)

ISSN: 1062-7375|EISSN: 1533-7995|EISBN13: 9781668425206|DOI: 10.4018/JGIM.292478

MLA

Lin, Boqiang, and Zhensheng Li. "Does the Clean Air Action Really Affect Labor Demand in China?." JGIM vol.30, no.6 2022: pp.1-23. http://doi.org/10.4018/JGIM.292478

APA

Lin, B. & Li, Z. (2022). Does the Clean Air Action Really Affect Labor Demand in China?. Journal of Global Information Management (JGIM), 30(6), 1-23. http://doi.org/10.4018/JGIM.292478

Chicago

Lin, Boqiang, and Zhensheng Li. "Does the Clean Air Action Really Affect Labor Demand in China?," Journal of Global Information Management (JGIM) 30, no.6: 1-23. http://doi.org/10.4018/JGIM.292478

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Abstract

How to balance resources, environment, and economic growth to achieve sustainable development is a challenge for developing countries. In 2013, China implemented a high-stringency environmental regulation—the Clean Air Action, which has effectively controlled air pollution. To explore the economic cost of environmental regulation, this paper investigates the policy effect on employment in the industrial sector. However, there are still controversies about whether environmental regulations impact employment. Based on the city-level data and firm-level data, this study applied a quasi-natural experiment for policy evaluation and used the mediating effect model for mechanism analysis. The difference-in-difference estimation results show that environmental regulation has a significant impact on employment. The mechanism analysis verifies that output adjustment, capital input, and green innovation are the main channels, by which environmental regulation distresses employment. The findings of this paper could be extended to other countries at a similar stage of development.