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

Creative Commons License

Creative Commons Attribution 4.0 International License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Included in

Economics Commons

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