Title:Who Bears ”Blue Sky” Costs: The Impact of Air Pollution Control on Labor Demand in China
Presenter:Prof.Zhang Bing
Time:2019.4.4 10:00-12:00
Location:A1028
Abstract:Using a ten-yearfirm-level panel dataset (1998-2007), we use an estimation technique pairing propensity score matching (PSM) with a difference-in-differences (DID) estimator to examine the impacts of air pollution control on employment in China. Wefind that China’s Key Cities for Air Pollution Control (KCAPC) policy effectively lowered SO2 emissions by approximately 25%. More importantly, the new environmental regulation significantly reduced manufacturing labor demand by approximately 4%. In addition, wefind that the air pollution control policy had heterogeneous effects depending on workforce skill andfirm ownership. More specifically, low skilled employees and workers in privately ownedfirms bear more burden of environmental regulation in China.
