Jobs and the environment: An overview

Abstract

This paper provides an overview of economic research on the relationship between environmental protection and employment. The paper addresses, first, the impact of existing regulation on overall employment rates, shutdowns and layoffs, and regulation-induced capital flight from developed countries. Second, the paper provides a framework for evaluating claims that, over the longer run, environmental protection measures will boost overall employment and provide the foundation for a robust, sustainable economy.

Employment implications of stricter pollution regulation in China: theories and lessons from the USA

“…One of the first published academic studies to systematically examine the claim was (Goodstein 1996). 8 Using data on plant closures and job loss claims, Goodstein (1996) concludes that layoffs attributable to environmental regulation were negligible compared to overall US employment.…”

“…One of the first published academic studies to systematically examine the claim was (Goodstein 1996). 8 Using data on plant closures and job loss claims, Goodstein (1996) concludes that layoffs attributable to environmental regulation were negligible compared to overall US employment. In research aiming to quantify the relationship between environmental protection and jobs using an input-output model of the US economy, Bezdek et al (2008) conclude that while environmental protection measures both destroy and create jobs, the overall effect is positive at both the national and state level.…”

“…Similarly, regulation has the potential to affect employment positively. Expenditure diverted from production cost to pollution reduction activities can generate new types of employment (Goodstein 1996).…”

The Tradable Permits Approach to Protecting the Commons: What Have We Learned?

“…The transition has apparently been accomplished with few adverse employment consequences, though sufficient data to do a comprehensive evaluation do not exist. (Goodstein 1996) The employment consequences for fisheries have been more severe. In fisheries with reasonable enforcement the introduction of ITQs has usually been accompanied by a considerable reduction in the amount of fishing effort.…”

The employment implications of a low-carbon economy

“…Even the adverse impact of environmental measures on international competitiveness, traditionally cited as a primary argument against policy implementation, is contested by revisionist analysis. Two main reasons are suggested: (i) environmental regulations only make up a small percentage of total production costs and (ii) costs (taken in isolation) are only one of many factors affecting locational decisions (Goodstein, 1996). In addition, companies are more likely to consider the location of their markets, the quality of local workforce and political stability as important criteria for locational purposes.…”