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Labor market distortion and air pollution: An empirical analysis based on spatial effect modeling
Siling Yao1, Rui Xie1, Feng Han2
1School of Economics and Trade, Hunan University, Changsha, Hunan, 410079, China.
Journal of Environmental Management
|March 19, 2023
Summary
Labor market distortions worsen air pollution in Chinese cities by hindering technology and industrial upgrades. Addressing these distortions is key to improving air quality and sustainable development.
Area of Science:
- Environmental Economics
- Urban Studies
- Labor Economics
Background:
- Air pollution is a significant concern in China, linked to economic development.
- The precise mechanisms through which labor market distortions impact air pollution remain unclear.
Purpose of the Study:
- To investigate the direct and spillover effects of labor market distortion on sulfur dioxide (SO2) emissions in Chinese cities.
- To analyze the underlying mechanisms driving the relationship between labor market distortion and air pollution.
Main Methods:
- Utilized panel fixed-effects models, including the spatial Durbin model and mediated-effects model.
- Analyzed data from 283 Chinese cities spanning the period 2003-2015.
Main Results:
- Labor market distortion was found to directly exacerbate urban air pollution.
- Key mechanisms include suppressed technological progress, hindered industrial structure upgrading, and reduced energy use efficiency.
- The negative impacts were more pronounced in eastern and western China.
Conclusions:
- Mitigating labor market distortions is crucial for improving air quality in China.
- Policy interventions targeting labor markets can contribute to sustainable development and environmental protection.
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