The impact of carbon trading pilot policy on employment

Abstract

This paper investigates the impact of carbon trading pilot policies on employment in China. Using a multi-phase Difference-in-Differences (DID) model, the analysis reveals that these policies have significantly increased employment rates in pilot areas. The improvement is mainly attributed to environmental enhancements and an increase in foreign direct investment. Meanwhile, carbon trading policies promote technological progress and industrial structure adjustments. Their comprehensive impact on employment is nuanced, with both positive and negative effects observed. This research contributes to understanding how market-based environmental regulations can influence economic and employment dynamics, providing insights for policy implementation in regions with similar industrial structures.