02614cas a2200301 a 4500 AALejournalIMF021645 230101c9999 xx r poo 0 0eng d 18.00 USD 9781513573618 1018-5941 BD-DhAAL BD-DhAAL Mohommad, Adil. Employment Effects of Environmental Policies : Evidence From Firm-Level Data / Adil Mohommad. Washington, D.C. : International Monetary Fund, 2021. 1 online resource (29 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The employment impact of environmental policies is an important question for policy makers. We examine the effect of increasing the stringency of environmental policy across a broad set of policies on firms' labor demand, in a novel identification approach using Worldscope data from 31 countries on firm-level CO2 emissions. Drawing on evidence from as many as 5300 firms over 15 years and the OECD environmental policy stringency (EPS) index, it finds that high emission-intensity firms reduce labor demand upon impact as EPS is tightened, whereas low emission-intensity firms increase labor demand, indicating a reallocation of employment. Moreover, tightening EPS during economic contractions appears to have a positive effect on employment, other things equal. Quantifications exercises show modest positive net changes in employment for market-based policies, and modest negative net changes for non-market policies (mainly emission quantity regulations) and for the combined aggregate EPS. Within market-based policies, the percent decline in employment in high-emission firms (correspondingly the increase in low-emission firms) for a unit change in a policy index is smallest (largest) for trading schemes ('green' certificates, and 'white' certificates)-although stringency is not comparable across indices. Finally, the employment effects of EPS are not persistent. Mode of access: Internet Employment imf Foreign Exchange imf Informal Economy imf Underground Econom imf Unemployment imf IMF Working Papers; Working Paper ; No. 2021/140 Full text available on IMF http://elibrary.imf.org/view/journals/001/2021/140/001.2021.issue-140-en.xml IMF e-Library