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Do Environmental Standards Harm Manufacturing Employment?

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  • Golombek, Rolf
  • Raknerud, Arvid

Abstract

A major issue in the debate about imposing environmental standards on polluting firms is the possibility of negative effects on employment. The authors examine the impact of environmental regulations on employment in an empirical analysis. Norwegian data are used to study three manufacturing sectors with high shares of units under strict environmental regulations. They find that for two of these sectors, firms under strict environmental regulations had a higher tendency to increase employment and a lower tendency to exit than firms under weak or no environmental regulation. For the third sector, environmental regulations had no significant impact on employment. Copyright 1997 by The editors of the Scandinavian Journal of Economics.

Suggested Citation

  • Golombek, Rolf & Raknerud, Arvid, 1997. " Do Environmental Standards Harm Manufacturing Employment?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 99(1), pages 29-44, March.
  • Handle: RePEc:bla:scandj:v:99:y:1997:i:1:p:29-44
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    Cited by:

    1. Kjetil Telle, 2006. "“It Pays to be Green” – A Premature Conclusion?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 35(3), pages 195-220, November.
    2. Daniel L. Millimet, 2003. "Environmental Abatement Costs and Establishment Size," Contemporary Economic Policy, Western Economic Association International, vol. 21(3), pages 281-296, July.
    3. Anger, Niels & Oberndorfer, Ulrich, 2008. "Firm performance and employment in the EU emissions trading scheme: An empirical assessment for Germany," Energy Policy, Elsevier, vol. 36(1), pages 12-22, January.
    4. Juan Bárcena-ruiz & María Garzón, 2003. "Strategic Environmental Standards, Wage Incomes and the Location of Polluting Firms," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(2), pages 121-139, February.
    5. Bárcena Ruiz, Juan Carlos & Garzón San Felipe, María Begoña, 2000. "Environmental Standards, Wage Incomes and the Location of Polluting Firms," BILTOKI 2000-04, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística).
    6. Greaker, Mads, 2003. "Strategic environmental policy; eco-dumping or a green strategy?," Journal of Environmental Economics and Management, Elsevier, vol. 45(3), pages 692-707, May.
    7. Erik Biørn & Rolf Golombek* & Arvid Raknerud, 1998. "Environmental Regulations and Plant Exit," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(1), pages 35-59, January.

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