Environmental Regulation and Employment: Evaluating the Role of Water Pollution Prevention and Control Law in China
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Environmental Regulation and Employment: Evaluating the Role of Water Pollution Prevention and Control Law in China
Wei Yu, Xiao Liu7-16
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Abstract
In this paper, we investigate the impact of environmental regulations on employment in China. We apply a quasi-natural experiment on the revision of Water Pollution Prevention and Control Law in 2008 (WPPCL2008), and we analyze manufacturing sectors’ reaction to WPPCL2008 by using a differences-in-differences approach based on China’s thirty five sectors at the 2-digit level from 2003 to 2014. Our results show that although environmental regulations can reduce waste-water emissions, at the same time cause a decrease in employment. The results suggest that stringent environmental regulation is not cost free. Furthermore, this finding contradicts the popular view that the effect of Chinese legislation enforcement is insignificant.
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