Environment and Labor Markets
Optimal environmental policy aims at equalizing benefits and costs of improving environmental quality. While the benefits generally accrue in form of increased health, worker productivity and human capital, quality of life, and amenity values, the costs of environmental regulations are mostly borne through potential impacts on industrial activity and employment. Successful policy development requires detailed information on the magnitude and determinants of these benefits and costs. IZA's Environment and Labor Markets program area aims at providing credible empirical evidence on the impact of environmental factors and policies on labor market outcomes, human capital outcomes, industrial activity, production decisions, and demographic outcomes.