Environmental Courts, Environment and Employment: Evidence from China

Whether environmental governance will cause unemployment has always been an aspect that the government needs to pay attention to in the process of making environmental policies, and is also a concern of residents. This paper analyzes the policy effect of environmental courts, which is a very important policy tool for the legalization of China’s environmental governance. While investigating whether environmental courts can effectively improve environmental quality, we also analyze its possible impact on employment and the specific mechanisms. The results show that: (1) After the establishment of environmental courts, the PM2.5 concentration has been significantly reduced. (2) While improving the environmental quality, environmental courts will produce a weak employment promotion effect. (3) Environmental courts affect the amount of employment through cost effect, factor substitution effect and innovation effect. This study provides empirical evidence for China and other developing countries to promote the legalization of environmental governance.