Abstract:This paper examines the effects of environmental regulation and environmental regulation competition on employment based on the 2000-2014 Chinese provincial panel data by using spatial panel Durbin model. The results show that:(1) As a whole, strengthening environmental regulation can deteriorate the employment growth. In different regions, the effect of environmental regulation on employment is different. The greater strength of environmental regulation in the eastern regions has significant positive impact on employment, while the greater strength of environmental regulation in the central and western regions has negative impact on employment. (2) There exists the strategic environmental regulation competition among the local governments. From a national perspective, the environmental regulation competition among the local governments is mainly represented by "Race to Bottom" strategy. However, there exists difference among different regions. The environmental regulation competition in eastern regions is represented by the differential strategy, while the environmental regulation competition in central and western regions is characterized by "Race to Bottom" strategy. (3)Local environmental regulation competition has significant spatial spillover effects, and the relaxation of environmental regulation in a region will have a positive spillover effect on the employment of the neighboring region.

Key words:environmental regulation,environmental regulation competition,employment