Explaining employment and environmental degradation nexus with environmental employment curve (EEC): A sector-wide threshold estimation for China


Koyuncu Çakmak T., BEŞER M. K., Alola A. A.

Journal of Cleaner Production, cilt.436, 2024 (SCI-Expanded) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 436
  • Basım Tarihi: 2024
  • Doi Numarası: 10.1016/j.jclepro.2023.140264
  • Dergi Adı: Journal of Cleaner Production
  • Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Academic Search Premier, PASCAL, Aerospace Database, Business Source Elite, Business Source Premier, CAB Abstracts, Chimica, Communication Abstracts, Compendex, INSPEC, Metadex, Pollution Abstracts, Public Affairs Index, Veterinary Science Database, Civil Engineering Abstracts
  • Anahtar Kelimeler: China, Energy mix, Environmental employment curve (EEC), Environmental pollution, Sector analysis, Threshold estimation approach
  • Eskişehir Osmangazi Üniversitesi Adresli: Evet

Özet

China is the world's largest emitter of carbon dioxide and has experienced significant economic growth in the last decade. The country also has significant employment capacity and has witnessed rapid economic growth in the recent years. This study aims to investigate the existence of the environmental employment curve (EEC) in China's main economic sectors. This study examines the relationship between carbon emissions, economic growth, energy consumption, renewable energy consumption and employment (industry, services, agriculture) in China over the period 1990–2020 using threshold autoregressive regression estimation. According to the EEC hypothesis, there exists an inverted U-shaped relationship between environmental pollution and employment rate. Empirical results show that the EEC hypothesis seems to hold in China. Further, an analysis of the impact of employment on environmental pollution in China's three main sectors – industry, service and agriculture – shows that the EEC hypothesis cannot be rejected in the industrial and the agricultural sectors. In addition, empirical results show that a 1% increase in energy consumption leads to a 0.92% increase in carbon emissions, while the use of renewable energy leads to a 0.18% decrease. These results suggest that investments in green energy transformation do not cause employment loss. Hence, it is important to drive policies that promote investments in renewable and clean technologies, stimulate research in renewable energy-related institutions and support public-private partnerships. Additionally, to generate employment without compromising on the environment or prosperity, policymakers should choose to implement alternative technologies that are less polluting or do not produce any carbon emissions.