1. Assessing regional employment effects of the national emission trading scheme in China: Does Okun's law work?
- Author
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Cai, Wugan, Zhou, Yuhui, and Ye, Peiyun
- Subjects
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COMPUTABLE general equilibrium models , *EMISSIONS trading , *JOB creation , *CARBON nanofibers , *CLIMATE change mitigation , *TOBACCO smoke pollution , *EMPLOYMENT - Abstract
Employment creation and climate change mitigation are core tasks for achieving sustainable development goals. Whether or not carbon mitigation policy facilitate employment deserves deep exploration. Through the construction of multi-regional dynamic computable general equilibrium model (CGE) with more scientific energy & environment block, this paper first evaluates regional employment effects of the national emission trading scheme (ETS) in China. Furthermore, we explore the Okun's law of the national ETS based on the mediating effect model. The results show that whether in carbon-intensive industries (CIIs) or non-carbon-intensive industries (NCIIs), employment effects of the national ETS are differentiated across regions. Specifically, the national ETS generally promotes CIIs' employment in Southern, Eastern, Middle Yangtze River and Southwest regions, and has negative effects on CIIs' employment in other regions. Meanwhile, the national ETS brings employment creation to NCIIs of Southern region, while there are opposite results in NCIIs of Northeast region and mixed results in NCIIs of other regions. Moreover, the Okun's law of the national ETS holds in CIIs of each region, but it not fits the data for NCIIs. Therefore, it is important for the Chinese government to consider the differentiated employment effects in different regions carefully rather than adopt one-size-fit-all solution when constructing the national carbon market. [Display omitted] • Multi-regional dynamic CGE model is constructed for investigate. • The carbon emission accounting method in this paper is more scientific. • This paper focuses on employment effects of the national ETS at regional level. • Almost all regions would unavoidably witness more or less employment losses. • The Okun's law of the national ETS does not always hold. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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