The hidden benefit of environmental regulation: Evidence from a quasi-experiment in China

Many studies have focused on the direct benefits of environmental regulation, while the hidden benefits are neglected. Utilizing data from the China Health and Nutrition Survey (CHNS), this paper examines the indirect impacts of environmental regulation on workers’ health, along with the underlying mechanisms. Our results suggest that environmental regulation can indirectly promote the workers’ health significantly, which implies it will underestimate the benefit if neglect the hidden benefit of environmental regulation. And the increased defense spending and time spent exercising due to environmental regulation are the main channel for individuals. Meanwhile, enterprises may provide employees with more free time by reducing production and laying off workers, which also benefits the health of employees. The health benefits of different groups are quite different. These findings enhance our understanding of the hidden benefits of environmental regulation and enable a more accurate assessment of its costs and benefits.