What question did this study set out to answer?

The study aims to compare the employment impacts of administrative control versus market regulation environmental policies.

February 5, 2026SAGE OpenOpen Access

Employment Impacts of Environmental Policy Instruments: Administrative Versus Market Regulation

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Compares employment impacts of environmental policies in companies, suggesting optimal policy combinations to reduce unemployment risks.

The study aims to compare the employment impacts of administrative control versus market regulation environmental policies.
Analyzed data from Shanghai and Shenzhen A-share listed companies (2006-2022)
Employed a production cost function to theorize employment effects
Applied nonparametric and parametric event study methods to validate findings
Administrative control policies reduce employment levels by decreasing output.
Market regulation policies enhance employment by increasing clean production factors.
Optimal policy combinations can minimize unemployment risks while achieving emission reduction.

Cui et al. (2026) studied this question.

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