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Environmental standard and employment: impact of productivity effect

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  • Sen, Anindita
  • Acharyya, Rajat

Abstract

This paper analyses the effect of environmental standards on aggregate employment in the presence of a productivity effect in a multi-sector general equilibrium framework of an open economy. The productivity effect is generated among the skilled and unskilled workers as an improvement in the environmental quality improves their health, leading to an increase in their productivity. Though the productivity effect initially lowers labour demand as labour requirement per unit of production falls, a standard may raise employment depending on the parametric configurations. In this paper, we identify the role of this productivity effect on the change in employment and show that it may actually improve the chances of an employment expansion.

Suggested Citation

  • Sen, Anindita & Acharyya, Rajat, 2012. "Environmental standard and employment: impact of productivity effect," Environment and Development Economics, Cambridge University Press, vol. 17(2), pages 207-225, April.
    • Handle: RePEc:cup:endeec:v:17:y:2012:i:02:p:207-225_00
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    Cited by:

    1. Ganguly, Shrimoyee & Acharyya, Rajat, 2022. "Devaluation, Export Quality and Employment in A Small Dependent Economy," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 47(1), pages 137-165, March.
    2. Song, Malin & Xie, Qianjiao & Wang, Shuhong & Zhou, Li, 2021. "Intensity of environmental regulation and environmentally biased technology in the employment market," Omega, Elsevier, vol. 100(C).
    3. Anindita Sen & Rajat Acharyya, 2013. "Can policies backfire? The impact of uncoordinated domestic policies on global pollution," Economics Bulletin, AccessEcon, vol. 33(4), pages 2682-2691.
    4. Sen, Anindita, 2012. "Eco-Labelling and the Labour Market," MPRA Paper 49169, University Library of Munich, Germany.
    5. Sen, Anindita, 2013. "Intra-Industry Trade in Dirty Goods and Environmental Policies," MPRA Paper 49167, University Library of Munich, Germany.
    6. Chen, Tianqi & Zhang, Yi & Jiang, Cailou & Li, Hui, 2023. "How does energy efficiency affect employment? Evidence from Chinese cities," Energy, Elsevier, vol. 280(C).

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