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ORIGINAL RESEARCH
Does New Environmental Protection Law
Improve Enterprise Labor Investment
Efficiency? Evidence from China
1
School of Business, Jishou University, Jishou, Hunan 416000, China
Submission date: 2024-03-29
Final revision date: 2024-06-07
Acceptance date: 2024-06-29
Online publication date: 2024-09-16
Publication date: 2025-06-06
Pol. J. Environ. Stud. 2025;34(4):4869-4881
KEYWORDS
new environmental protection lawlabor investment efficiencygreen technology innovationfinancial restrictions
TOPICS
ABSTRACT
This study aims to elucidate the influence of China’s new environmental protection law (NEPL)
on enterprise labor investment efficiency. The dual combined goals of enhancing the environment
and stabilizing employment are central to this investigation. We focus on A-share listed companies
between 2010 and 2020. A difference-in-difference (DID) method is applied to experimentally evaluate
the NEPL’s influence on heavy-polluting enterprise labor investment efficiency. Results indicate
a significant enhancement in heavy-polluting enterprise labor investment efficiency after carrying
out NEPL. This conclusion remains robust through various rigorous examinations. Additional
research reveals that the NEPL’s influence on heavy-polluting enterprise labor investment efficiency
is mediated through mechanisms such as green technology innovation and overcoming enterprise
financial restrictions. The positive influence of the NEPL is more pronounced in regions characterized
by lower marketization, reduced labor intensity, and a prevalence of SOEs. Moreover, the NEPL
predominantly addresses the issue of labor underinvestment, with less apparent impact on suppressing
labor overinvestment. This emphasizes its role in alleviating deficiencies in labor investment rather
than curbing excessive allocation. In summary, we provide valuable insights into the NEPL’s positive
influence on heavy-polluting enterprise labor investment efficiency, particularly in the context
of environmental improvement and employment stability.
CONFLICT OF INTEREST
The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
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| eISSN: | 2083-5906 |
| ISSN: | 1230-1485 |
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