The role of green technology innovation on employment: does industrial structure optimization and air quality matter?

Although green technology innovation is an important means to balance the environment and economy, few studies have analyzed the employment effects of green technology innovation in developing countries. Therefore, this paper employs the panel data of 286 prefecture-level cities in China from 2006 to 2017 to empirically test the impact of various green technology innovations on urban employment. Meanwhile, from the perspectives of air quality and industrial structure optimization, the influencing mechanism of green technology innovation on employment is deeply analyzed. The results reveal that all kinds of green technology innovation can significantly increase the employment level of the city, and the promotion effect is strongest in the 2nd year after the patent application. According to the results of heterogeneity analysis, key cities of environmental protection and non-resource cities are more likely to generate positive employment effects through green technology innovation. Finally, the mediation effect test model confirms that green technology innovation can promote employment by improving air quality and causing industrial structure optimization.