GHG Emissions Mitigation in the European Union Based on Labor Market Changes

Abstract

The effects of the labor market on environmental issues are an actual problem at the global level, and recommendations are required to achieve equilibrium between labor productivity and environmental protection. Considering the ecological limits of work and the necessity of reducing the working time to mitigate GHG (greenhouse gas) emissions, this paper aims to assess the impact of the labor market on GHG emissions in the EU-28 countries. Using panel data models for 2007–2019, a positive effect of working time for employed persons on GHG emissions was detected. Labor productivity has a positive impact on emissions for most of the developed countries in the EU (old member states), while the effect is negative in the case of most of the new member states, which suggests that more efforts should be made by old member states to correlate labor productivity with a sustainable level of GHG emissions. As a novelty for research in the field, we assessed also the effect of targeted labor utilization on GHG emissions in order to describe the context of a sustainable economy that is an objective for each country in the EU. These results suggest that progress in GHG emissions mitigation might be achieved by reducing the working time for employed persons, which will also improve well-being. These recommendations could be useful also for other developed countries outside the EU that encounter the same difficulties.