Opportunity or Curse: Can Green Technology Innovation Stabilize Employment?

This study examines the influence of green technology innovation on employment in enterprises and explores the potential mechanisms behind this impact, which is critical to understanding the social impact of the green transition in the climate change scenario. This paper, based on detailed data from listed corporations in China between 2010 and 2020, discovers that the introduction of green technology innovation by corporations has a substantial positive impact on employment levels. The effects of green technology innovation on employment are both persistent and heterogeneous; they persist even two years later, with more significant effects observed in non-heavy-polluting industries, state-owned enterprises, and highly educated employees. This article also carries several policy implications. The findings presented in this paper provide useful insights into the potential employment consequences of the green transition as well as the reactions and adjustment behaviors that corporations exhibit in the low-carbon transition. Additionally, this development holds significant implications for other developing nations grappling with the challenges of switching to environmentally sustainable practices.