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ENVIRONMENTAL REGULATIONS - Edited
ENVIRONMENTAL REGULATIONS - Edited
The evidence indicates that environmental regulation can cause a statistically adverse
effect on the trading, the employment aspects, plant location, as well as productivity in the short
run especially in some areas where population and energy-intensive sectors although the impact
can e small to medium-sized organization. So the new environmental regulation has an impact
on the industries that may be required to efficiently use clean technology. These include but not
limited to;
Stricter regulations to some industries, some firms are likely to have more regulation on the
pollution aspects. For example, the manufacturing industries can have more regulations than
transportation.
The production cost is likely to go up, asymmetric environmental laws can make the
organizations experience more cost of productions in the processes of coping with the
regulations.
More innovations might emerge in the process of the organizations trying to adjust cost and
Outline the key factors determining the employment effect of introducing this
There is some effect of the employment effects of rig the cleaner technology in the
the innovative strategies that will need a more skilled individual to deal with the changes
hence in the processes securing more chances for the young individuals.
The international trade, the adverse regulation will capture the international trade which
Distribution of skills also is a factor that can cause more effect to the organizations to cause
more drift of the employment in some regions in the processes of coping with the
regulations.
Reference
Sato, A. D. and M., Dechezleprêtre, A., *Grantham Research Institute on Climate Change and
https://www.journals.uchicago.edu/doi/10.1093/reep/rex013.