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Environmental Regulation and Labor Reallocation: Evidence from the Clean Air Act

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  • W. Reed Walker

Abstract

This paper uses newly available data on plant level regulatory status linked to the Census Longitudinal Business Database to measure the impact of changes in county level environmental regulations on plant and sector employment levels. Estimates from a variety of specifications suggest a strong connection between changes in environmental regulatory stringency and both employment growth and levels in the affected sectors. The preferred estimates suggest that changes in county level regulatory status due to the 1990 Clean Air Act Amendments reduced the size of the regulated sector by as much as 15 percent in the 10 years following the changes.

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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.101.3.442
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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 101 (2011)
Issue (Month): 3 (May)
Pages: 442-47

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Handle: RePEc:aea:aecrev:v:101:y:2011:i:3:p:442-47

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  1. Becker, Randy A., 2005. "Air pollution abatement costs under the Clean Air Act: evidence from the PACE survey," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 144-169, July.
  2. W. Reed Walker, 2013. "The Transitional Costs of Sectoral Reallocation: Evidence From the Clean Air Act and the Workforce," The Quarterly Journal of Economics, Oxford University Press, vol. 128(4), pages 1787-1835.
  3. Michael Greenstone, 1998. "The Impacts of Environmental Regulations on Industrial Activity: Evidence from the 1970 and 1977 Clean Air Act Amendments and the Census of Manufacturers," Working Papers 787, Princeton University, Department of Economics, Industrial Relations Section..
  4. repec:reg:wpaper:98 is not listed on IDEAS
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Cited by:
  1. Nicholas J. Sanders & Charles F. Stoecker, 2011. "Where Have All the Young Men Gone? Using Gender Ratios to Measure Fetal Death Rates," NBER Working Papers 17434, National Bureau of Economic Research, Inc.
  2. Gibson, Matthew, 2014. "Dirty and perverse: regulation-induced pollution substitution," University of California at San Diego, Economics Working Paper Series, Department of Economics, UC San Diego qt6tn7t0wv, Department of Economics, UC San Diego.
  3. Yazid Dissou & Qian Sun, 2013. "GHG Mitigation Policies and Employment: A CGE Analysis with Wage Rigidity and Application to Canada," Canadian Public Policy, University of Toronto Press, vol. 39(s2), pages 53-66, August.

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