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Occupational affiliation and the incidence of environmental regulation

Author

Listed:
  • Marten, Alex L.
  • Schreiber, Andrew
  • Wolverton, Ann

Abstract

Empirical research suggests that occupational heterogeneity is crucial to explaining labor market outcomes. However, most computable general equilibrium models used to assess energy and environmental policies assume a single labor type that can easily shift from one occupation to another. We evaluate the social cost and incidence implications of labor market heterogeneity via limits it imposes on labor mobility and substitution in the supply and demand of occupations within a computable general equilibrium model. We find that occupational heterogeneity has limited implications for aggregate social costs but plays a key role in how those costs are distributed across households.

Suggested Citation

  • Marten, Alex L. & Schreiber, Andrew & Wolverton, Ann, 2026. "Occupational affiliation and the incidence of environmental regulation," Journal of Environmental Economics and Management, Elsevier, vol. 139(C).
    • Handle: RePEc:eee:jeeman:v:139:y:2026:i:c:s0095069626000811
    DOI: 10.1016/j.jeem.2026.103361
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    JEL classification:

    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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