Does environmental regulation affect labor demand in China? Evidence from the textile printing and dyeing industry

Developing countries, including China, are just beginning to figure out how to balance economic development with the desire to address numerous severe environmental problems. In this paper, we use two enterprise-level data sets – China's Environmental Statistics Database and China's Indust...

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Published inJournal of environmental economics and management Vol. 86; pp. 277 - 294
Main Authors Liu, Mengdi, Shadbegian, Ronald, Zhang, Bing
Format Journal Article
LanguageEnglish
Published Elsevier Inc 01.11.2017
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Abstract Developing countries, including China, are just beginning to figure out how to balance economic development with the desire to address numerous severe environmental problems. In this paper, we use two enterprise-level data sets – China's Environmental Statistics Database and China's Industrial Enterprise Database – to estimate the impact of a more stringent wastewater discharge standard imposed on all the textile printing and dyeing enterprises in the Lake Tai, Jiangsu region, on labor demand. We find that enterprises which face this new more stringent standard decreased labor demand by approximately 7%. Furthermore, we find that the new standard had heterogeneous impacts on different types of enterprises. For example, our results indicate that the more stringent discharge standard reduced employment in domestically-owned private enterprises by 7.4%, but had little or no impact on state-owned or foreign-owned enterprises.
AbstractList Developing countries, including China, are just beginning to figure out how to balance economic development with the desire to address numerous severe environmental problems. In this paper, we use two enterprise-level data sets – China's Environmental Statistics Database and China's Industrial Enterprise Database – to estimate the impact of a more stringent wastewater discharge standard imposed on all the textile printing and dyeing enterprises in the Lake Tai, Jiangsu region, on labor demand. We find that enterprises which face this new more stringent standard decreased labor demand by approximately 7%. Furthermore, we find that the new standard had heterogeneous impacts on different types of enterprises. For example, our results indicate that the more stringent discharge standard reduced employment in domestically-owned private enterprises by 7.4%, but had little or no impact on state-owned or foreign-owned enterprises.
Author Liu, Mengdi
Zhang, Bing
Shadbegian, Ronald
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  surname: Liu
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  givenname: Ronald
  surname: Shadbegian
  fullname: Shadbegian, Ronald
  organization: U.S. Environmental Protection Agency, National Center for Environmental Economics, United States
– sequence: 3
  givenname: Bing
  surname: Zhang
  fullname: Zhang, Bing
  email: zhangb@nju.edu.cn
  organization: State Key Laboratory of Pollution Control and Resource Reuse, School of Environment, Nanjing University, China
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PublicationDecade 2010
PublicationTitle Journal of environmental economics and management
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Snippet Developing countries, including China, are just beginning to figure out how to balance economic development with the desire to address numerous severe...
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SubjectTerms Employment
Environmental regulation
Pollution reduction
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Title Does environmental regulation affect labor demand in China? Evidence from the textile printing and dyeing industry
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