The Impact of Lowering Carbon Emissions on Corporate Labour Investment: A Quasi-Natural Experiment
We examine the impact of low-carbon city (LCC) initiatives on labour investment decisions (quantity, quality, and well-being). Using a time-varying difference-in-differences approach based on staggered implementations of such a pilot program, we report an inefficient outcome - absolute deviation of...
| Main Authors: | , , |
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| Format: | Journal Article |
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Elsevier
2023
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| Online Access: | http://hdl.handle.net/20.500.11937/91746 |
| _version_ | 1848765584831938560 |
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| author | Cao, June Li, W. Hasan, I. |
| author_facet | Cao, June Li, W. Hasan, I. |
| author_sort | Cao, June |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | We examine the impact of low-carbon city (LCC) initiatives on labour investment decisions (quantity, quality, and well-being). Using a time-varying difference-in-differences approach based on staggered implementations of such a pilot program, we report an inefficient outcome - absolute deviation of labour investment from the optimal net hiring – especially for firms in labour-intensive industries and firms with high financial slack or adjustment costs. We, however, observe increased investments in highly skilled personnel and compensated with employee stock ownership, especially by firms under intense pressure to reduce carbon emissions. Such initiatives are also closely associated with the significant enhancement of workplace safety. Overall, LCC helps to upgrade the corporate labour structure by hiring more skilled employees through reduced agency problems and heightened green innovation. |
| first_indexed | 2025-11-14T11:37:35Z |
| format | Journal Article |
| id | curtin-20.500.11937-91746 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T11:37:35Z |
| publishDate | 2023 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-917462023-06-06T02:36:18Z The Impact of Lowering Carbon Emissions on Corporate Labour Investment: A Quasi-Natural Experiment Cao, June Li, W. Hasan, I. We examine the impact of low-carbon city (LCC) initiatives on labour investment decisions (quantity, quality, and well-being). Using a time-varying difference-in-differences approach based on staggered implementations of such a pilot program, we report an inefficient outcome - absolute deviation of labour investment from the optimal net hiring – especially for firms in labour-intensive industries and firms with high financial slack or adjustment costs. We, however, observe increased investments in highly skilled personnel and compensated with employee stock ownership, especially by firms under intense pressure to reduce carbon emissions. Such initiatives are also closely associated with the significant enhancement of workplace safety. Overall, LCC helps to upgrade the corporate labour structure by hiring more skilled employees through reduced agency problems and heightened green innovation. 2023 Journal Article http://hdl.handle.net/20.500.11937/91746 10.1016/j.eneco.2023.106653 http://creativecommons.org/licenses/by-nc-nd/4.0/ Elsevier fulltext |
| spellingShingle | Cao, June Li, W. Hasan, I. The Impact of Lowering Carbon Emissions on Corporate Labour Investment: A Quasi-Natural Experiment |
| title | The Impact of Lowering Carbon Emissions on Corporate Labour Investment: A Quasi-Natural Experiment |
| title_full | The Impact of Lowering Carbon Emissions on Corporate Labour Investment: A Quasi-Natural Experiment |
| title_fullStr | The Impact of Lowering Carbon Emissions on Corporate Labour Investment: A Quasi-Natural Experiment |
| title_full_unstemmed | The Impact of Lowering Carbon Emissions on Corporate Labour Investment: A Quasi-Natural Experiment |
| title_short | The Impact of Lowering Carbon Emissions on Corporate Labour Investment: A Quasi-Natural Experiment |
| title_sort | impact of lowering carbon emissions on corporate labour investment: a quasi-natural experiment |
| url | http://hdl.handle.net/20.500.11937/91746 |