Innovating for Sustainability: Employment Impacts of Diverse Environmental Regulations and Incentives

Andong Zhang ()
Additional contact information
Andong Zhang: Hanseo University

Journal of the Knowledge Economy, 2025, vol. 16, issue 3, No 22, 11599-11616

Abstract: Abstract In an era where environmental sustainability intersects critically with economic development, understanding the employment effects of environmental regulation (ER) and incentives becomes crucial. This study delves into the multifaceted impacts of heterogeneous ERs on employment in various sectors, specifically focusing on environmental subsidies and sewage charges. Employing a mixed-method approach, we analyze data from multiple industries subjected to diverse ERs. Our findings reveal that while initially perceived as cost-inducing, stringent environmental policies spur innovation and entrepreneurial ventures, particularly in technology-intensive sectors. Environmental subsidies emerge as a significant catalyst for new job creation, fostering a shift toward a knowledge-driven green economy. Conversely, the imposition of sewage charges demonstrates a varied impact, with short-term employment challenges in certain industries offset by long-term benefits through the adoption of greener technologies and practices. The study contributes to the discourse on the knowledge economy by illustrating how knowledge and technology management can mediate the relationship between ERs and employment. We argue that policy-makers can leverage these insights to design environmentally sustainable yet economically viable regulations. Our findings are particularly relevant for entrepreneurs and businesses at the intersection of technology and the environment, underlining the potential of environmental challenges as avenues for innovation and new market opportunities. This paper provides a nuanced understanding of how environmental policies shape the labor market, highlighting the intricate balance between ecological responsibility and economic growth in the knowledge economy.

Keywords: ER; Employment effects; Innovation; Sustainability; Environmental subsidies; Sewage charges; Technology management; Policy impact assessment; Green economy (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s13132-024-02327-8 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jknowl:v:16:y:2025:i:3:d:10.1007_s13132-024-02327-8

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/13132

DOI: 10.1007/s13132-024-02327-8

Access Statistics for this article

Journal of the Knowledge Economy is currently edited by Elias G. Carayannis

More articles in Journal of the Knowledge Economy from Springer, Portland International Center for Management of Engineering and Technology (PICMET)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().