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<p>This study conducts an event study to evaluate the impact of the Regional Greenhouse Gas Initiative (RGGI) on the United States’ labor market outcomes. Using an event-study design and data from the Current Population Survey (2000–2020), we compare labor market outcomes between RGGI and non-RGGI states. Results show a significant and immediate decline in annual wage income for unskilled workers in energy-intensive sectors following RGGI implementation, with the negative effect growing in magnitude and peaking at approximately a 7% reduction four years post-reform. For skilled workers, the wage effects are less consistent and generally statistically insignificant, though negative point estimates are observed in some post-treatment years. We find no significant effects on weeks worked, unemployment probability, or outcomes for workers in non-energy-intensive sectors.</p>

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Distributional labor market effects of the United States Regional Greenhouse Gas Initiative

  • 期刊论文

  • 出版模式：

    开放获取

  • 发表日期：

    2026年3月8日

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  • Salman Almutawa,
  • Khaled Bastaki,
  • Jayendira P. Sankar

摘要

This study conducts an event study to evaluate the impact of the Regional Greenhouse Gas Initiative (RGGI) on the United States’ labor market outcomes. Using an event-study design and data from the Current Population Survey (2000–2020), we compare labor market outcomes between RGGI and non-RGGI states. Results show a significant and immediate decline in annual wage income for unskilled workers in energy-intensive sectors following RGGI implementation, with the negative effect growing in magnitude and peaking at approximately a 7% reduction four years post-reform. For skilled workers, the wage effects are less consistent and generally statistically insignificant, though negative point estimates are observed in some post-treatment years. We find no significant effects on weeks worked, unemployment probability, or outcomes for workers in non-energy-intensive sectors.