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China has experienced a sharp increase in industrial accidents in recent years. Although Chinese government constantly stresses that production safety is above everything and has recently endeavored to reduce industrial accidents by implementing strict production safety regulatory policies, no significant improvement has been achieved. In this study, we investigate the deep reason of China's increasingly worse production safety situation. We argue that China's tightening environmental regulation after 2013 may have aggravated the production safety hazard among firms of the polluting industries, which are the primary target of the environmental regulation and are also susceptible to industrial accidents. Specifically, the environmental regulation may have squeezed the living space for pollution-intensive firms, and in order to survive, these firms may have to cut down precautionary expenditures on production safety, which could ultimately lead to more industrial accidents. With a data set collected from the WISENEWS, by employing a difference-in differences (DID) strategy, we find that that the number of industrial accidents in the polluting industries increases by more than 50% compared with the non-polluting industries after 2013 when China tightened its environmental regulation, and such effects are even more dramatic in the 48 key regulatory cities which face most strict regulations. Further mechanism analysis shows that pollution-intensive firms face a tradeoff between the expenditures on cleaner production and production safety. To sum up, the environmental regulation provides strong disincentive for pollution-intensive firms to invest in production safety and thus aggravates the production safety situation for these originally accident-prone polluting industries. Our study highlights the additional cost of environmental regulation that has been completely ignored in the literature, that is, it could generate severe industrial accidents and make our society less secure.
This doctoral thesis examines three aspects of industrial safety in the British labour market - the impact of industrial accidents on manufacturing industry wages during the 1970s; the basis for and impact of changes in English common law and employers' liability rules on the accident rates in the 19th century regional coalmining sector; and the enforcement and impact of industrial safety legislation under the Factory Acts on British manufacturing sector accident rates during the 20th century. Each topic consists of a theoretical section which develops formal economic models of the interaction between accident, safety, and labour market variables (wages, turnover), and an econometric analysis designed to test the theory and determine the impact of industrial accidents or industrial safety law on the sections of the British labour market. The thesis was completed in 1981 when it represented the first systematic economic and empirical analysis, including estimates of the value of life, drawn from labour market theory and the development of a novel negotiated model of regulation.