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September 20, 2025Business Ethics the Environment & Responsibility

Environmental Levies and Business Ethics: Unintended Labor Market Impacts and Corporate Responsibility in China

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Authors

ZWZehao WangYFYu FengYSYang Shen

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Overview

Empirical analysis reveals environmental taxation affects labor demand and corporate responsibility in China, highlighting inequalities.

Key Points

  • Environmental taxes increase production costs, leading to job losses, especially among low-skilled workers.
  • Large firms adapt to taxes by adopting cleaner technologies, while small firms often cut production leading to greater employment declines.
  • Government green subsidies can alleviate job losses by supporting firms in transitioning to eco-friendly practices.
  • This study underscores the need for balanced policies to promote sustainability without harming the labor market.

Cite This Study

Wang et al. (2025) studied this question.

synapsesocial.com/papers/68d469ce31b076d99fa66cc4https://doi.org/10.1111/beer.70006
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