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The Role of Environmental Regulation and Technological Innovation in the Employment of Manufacturing Enterprises: Evidence from China

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  • Die Li

    (School of Economics, Wuhan University of Technology, Wuhan 430070, China)

  • Jinsheng Zhu

    (School of Economics, Wuhan University of Technology, Wuhan 430070, China)

Abstract

With the increasingly severe emission reduction pressures, it is an inevitable choice for China to improve the intensity of environmental regulation. At the same time, the impact of technological innovation on enterprise employment may lead to some new changes under the environmental regulation constraints. However, existing studies have not included environmental regulation into the theoretical framework of technological innovation and enterprise employment, nor has the influencing mechanism of environmental regulation and technological innovation in the employment of manufacturing enterprises been explored. This paper uses the panel data of listed manufacturing companies in the A-share market of Shanghai and Shenzhen from 2011 to 2017 to examine the impact of environmental regulation and technological innovation on the employment of manufacturing enterprises, and explore their influence mechanisms in a theoretical framework based the moderating effect model. The findings demonstrate the following: First, the technological innovation has a positive creative effect on enterprise employment. Second, the impact of environmental regulation on enterprise employment is significantly positive. Third, environmental regulation has a negative moderating effect on the impact of technological innovation on enterprise employment. Finally, the impacts of both environmental regulation and technological innovation on the employment of manufacturing enterprises are heterogeneous across enterprises due to differences in ownership structure, the degree of pollution, and technical density. Therefore, faced with the objective reality that environmental carrying capacity has reached or approached the upper limit, China needs to formulate a differentiated and diversified technological innovation system and environmental protection policy, improve the environmental innovation level of manufacturing enterprises, and form a green development model, which is of great significance for achieving high-quality development and stable employment.

Suggested Citation

  • Die Li & Jinsheng Zhu, 2019. "The Role of Environmental Regulation and Technological Innovation in the Employment of Manufacturing Enterprises: Evidence from China," Sustainability, MDPI, vol. 11(10), pages 1-23, May.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:10:p:2982-:d:234231
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    2. Jing Xie & Qi Sun & Shaohong Wang & Xiaoping Li & Fei Fan, 2020. "Does Environmental Regulation Affect Export Quality? Theory and Evidence from China," IJERPH, MDPI, vol. 17(21), pages 1-23, November.
    3. Shimei Weng & Jianbao Chen, 2023. "How Does Industrial Upgrading Affect Carbon Productivity in China’s Service Industry?," Sustainability, MDPI, vol. 15(13), pages 1-20, July.
    4. Manli Cheng & Zhen Shao & Changhui Yang & Xiaoan Tang, 2019. "Analysis of Coordinated Development of Energy and Environment in China’s Manufacturing Industry under Environmental Regulation: A Comparative Study of Sub-Industries," Sustainability, MDPI, vol. 11(22), pages 1-20, November.
    5. Waleed A. Hammood & Ruzaini Abdullah Arshah & Salwana Mohamad Asmara & Hussam Al Halbusi & Omar A. Hammood & Salem Al Abri, 2021. "A Systematic Review on Flood Early Warning and Response System (FEWRS): A Deep Review and Analysis," Sustainability, MDPI, vol. 13(1), pages 1-24, January.
    6. Longzhen Yu & Jianhua Zhu & Zhixian Wang, 2021. "Green Taxation Promotes the Intelligent Transformation of Chinese Manufacturing Enterprises: Tax Leverage Theory," Sustainability, MDPI, vol. 13(23), pages 1-27, December.
    7. Lijie Wang & Jianjun Lu, 2019. "Analysis of the Social Welfare Effect of Environmental Regulation Policy Based on a Market Structure Perspective and Consumer," Sustainability, MDPI, vol. 12(1), pages 1-15, December.
    8. Chao Wu & Yu Hua, 2023. "Does Environmental Regulation Have an Employment Dividend? Evidence from China," Sustainability, MDPI, vol. 15(7), pages 1-20, April.
    9. Beata Zofia Filipiak & Dorota Wyszkowska, 2022. "Determinants of Reducing Greenhouse Gas Emissions in European Union Countries," Energies, MDPI, vol. 15(24), pages 1-24, December.

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