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Environment versus Jobs: An Industry-level Analysis of Sweden

Author

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  • Amjadi, Golnaz

    (CERE - the Center for Environmental and Resource Economics)

Abstract

The aim of this paper was to investigate whether the environment and employment compete with each other in Swedish manufacturing industry. The effect of a marginal increase in environmental expenditure and environmental investment costs on sector-level demand for labor (employment) was studied using a detailed firm-level panel dataset for the period 2001–2008. The results showed that the sign and magnitude of the net employment effects ultimately depend on the aggregate sector-level output demand elasticity. If the output demand is inelastic, these costs induce small net improvements in employment, while a more elastic output demand suggests negative, but in most sectors relatively small, net effects on demand for labor. Hence, the results did not generally indicate a substantial trade-off between jobs and the environment. The general policy recommendation that can be drawn from this study is that, in the absence of empirically estimated output demand elasticities, a careful attitude regarding national environmental initiatives for sectors exposed to world market competition should be adopted.

Suggested Citation

  • Amjadi, Golnaz, 2020. "Environment versus Jobs: An Industry-level Analysis of Sweden," CERE Working Papers 2020:13, CERE - the Center for Environmental and Resource Economics, revised 04 Nov 2020.
    • Handle: RePEc:hhs:slucer:2020_013
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    Cited by:

    1. Moriah Bostian & Rolf Färe & Shawna Grosskopf & Tommy Lundgren, 2022. "Prevention or cure? Optimal abatement mix," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 24(4), pages 503-531, October.

    More about this item

    Keywords

    Environmental management costs; Output demand elasticity;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law

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