Assessment of the Impact of Green Economy Development on Employment

¹ Peter the Great St. Petersburg Polytechnic University, 195251 St. Petersburg, Russian Federation
² “Tashkent Institute of Irrigation and Agricultural Mechanization Engineers” National Research University, 100000 Tashkent, Uzbekistan
³ Tashkent State University of Economics, Tashkent, Uzbekistan

^* Corresponding author: arteeva_vs@spbstu.ru

Abstract

The relevance of this study is due to the growing attention to the development of green economy and its potential impact on employment. The purpose is to evaluate how green economic development affects employment in Russia, using panel data from 82 regions spanning the period from 2016 to 2020. To analyze the data, we use generalized linear regression models such as OLS, random effects, and fixed effects models. The final fixed effects model explains about 25% of the total variation in unemployment rates across different regions. However, evidence of cross-sectional dependence in the residuals suggests potential challenges, such as the omission of relevant variables that capture unobserved heterogeneity and inadequate consideration of spatial clustering within specific regions. The main results show that expenditure on environmental protection and maintenance of protected areas are positively linked with unemployment. This suggests that these expenditures may not directly lead to job creation. There could be several reasons for that: administrative costs, the delayed effect of environmental investments, or regional disparities in infrastructure and skilled labor availability.