Economics
Document Type
Article
Abstract
Understanding the potential effect of environmental regulation on employment is of broad interest to key stakeholders. Concerns encompass both short- and longer-term effects on workers within the regulated sector, affected communities that already suffer from a lack of employment opportunities, and net employment in the overall economy. We begin our review by presenting a neoclassical microeconomic framework demonstrating how environmental regulations might affect labor demand. We then summarize the main empirical findings from the literature, including sector-specific partial equilibrium estimates and general equilibrium approaches to identifying the employment impacts of regulations. We also briefly describe the literature on how environmental regulations affect labor supply. Finally, we discuss remaining research gaps.
Publication Title
Annual Review of Resource Economics
Publication Date
10-2023
Volume
15
First Page
177
Last Page
197
ISSN
1941-1340
DOI
10.1146/annurev-resource-101422-115834
Keywords
employment, environmental regulation, labor demand
Repository Citation
Gray, Wayne B.; Shadbegian, Ron; and Wolverton, Ann, "Environmental Regulation and Labor Demand: What Does the Evidence Tell Us?" (2023). Economics. 100.
https://commons.clarku.edu/faculty_economics/100
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Copyright Conditions
Gray, W. B., Shadbegian, R., & Wolverton, A. (2023). Environmental Regulation and Labor Demand: What Does the Evidence Tell Us?. Annual Review of Resource Economics, 15(1), 177-197.