The Mechanism of Low-Carbon Development’s Effect on Employment Quality in Chinese Cities—Based on the Government Perspective

The impact of low-carbon development on employment quality is multidimensional. On the one hand, it may enhance employment quality through technological innovation and industrial upgrading; on the other hand, structural adjustments and industrial shifts may adversely affect the development of employment quality. This study uses panel data from 281 cities in China from 2008 to 2022 to construct a model of the mechanisms through which low-carbon development affects employment quality in Chinese cities, with a focus on the role of government in this process. The study finds that fiscal decentralization somewhat weakens the positive impact of low-carbon development on employment quality, while government regulation, by promoting green transformation and optimizing resource allocation, enhances the positive effects of low-carbon development on employment quality. Furthermore, panel threshold effect analysis shows that both fiscal decentralization and government regulation have threshold effects, with threshold values of 0.174 and 59.26, respectively. Once these thresholds are surpassed, the degree of influence on the relationship between low-carbon development and employment quality changes.