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Employment Impacts of Environmental Policy Instruments

Administrative Versus Market Regulation

Bibliographic Data

ID22006240
AuthorsWei Cui (0000-0002-3356-5054, Nanjing Institute of Technology, corresponding author), Wenqi Cui (0000-0002-6857-3417, Nanjing Institute of Technology, corresponding author), Anwei Wan (0000-0003-0461-9946, Hohai University, corresponding author)
Year2026
Volume16
Issue1
Publication date2026-01-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueSAGE Open (JOURNAL)
Journal identifiersISSN: 2158-2440 • E-ISSN: 2158-2440
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/21582440251414398
OpenAlexW7127321638
LanguageEN
References cited40

The objective of this study is to compare the employment impacts of administrative control-type environmental policies versus market regulation-type environmental policies. This paper employs a production cost function to analyze the theoretical mechanisms through which these two types of environmental regulations affect employment. Using data from Shanghai and Shenzhen A-share listed companies from 2006 to 2022, the nonparametric event study method and the parametric event study method are applied to validate the findings of the theoretical mechanism analysis. Both theoretical mechanisms and empirical findings indicate that administrative control-type environmental policies reduce employment levels by decreasing output, whereas market regulation-type environmental policies enhance employment levels by increasing the input of clean production factors. Therefore, when implementing environmental regulatory policies, it is essential not only to consider the urgency of carbon emission reduction but also to fully account for employment concerns, selecting policy combinations that minimize unemployment risks to the greatest extent possible

Empirical research · Environmental policy · Environmental regulation · Event study · Nonparametric statistics · Unemployment · Energy, Environment, Economic Growth · Environmental Sustainability in Business · Labor market dynamics and wage inequality

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