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Carbon emission risk and corporate employment creation: Evidence from a quasi‐natural experiment based on the Paris Agreement

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  • Bo Cheng
  • Yuye Ma
  • Shiyu Lu

Abstract

Under a difference‐in‐difference model, this paper takes China's signing of the Paris Agreement in 2016 as a quasi‐natural experimental event to identify the impact of carbon emission risks on a firm's employment creation and its mechanism. The results show that after this event, the employment creation level of high carbon emission risk firms has significantly increased by about 2.19% compared with that of low carbon emission firms. Moreover, increasing green technology innovation and attracting analysts' attention are two underlying channels. Furthermore, the carbon emission risk significantly improves firms' performance through the employment creation channel and makes the managers more optimistic.

Suggested Citation

  • Bo Cheng & Yuye Ma & Shiyu Lu, 2024. "Carbon emission risk and corporate employment creation: Evidence from a quasi‐natural experiment based on the Paris Agreement," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(2), pages 685-701, March.
    • Handle: RePEc:wly:mgtdec:v:45:y:2024:i:2:p:685-701
    DOI: 10.1002/mde.4034
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    References listed on IDEAS

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