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Environmental Regulations and Plant Exit

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Author Info
Erik Biørn
Rolf Golombek* ()
Arvid Raknerud

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Abstract

A qualitative response model is applied to study the relationship between environmental regulations and plant exit. The data set is Norwegian panel data for establishments in three manufacturing sectors that have high shares of units which have been under strict environmental regulations. In two of the sectors, the estimated exit probability of regulated establishments is, ceteris paribus, only one third of the exit probability of non-regulated establishments. We also find that the probability to change regulation status from being non-regulated to become regulated depends significantly on economic factors. In particular, establishments with weak profitability had the highest probability to come under environmental regulation. Copyright Kluwer Academic Publishers 1998

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File URL: http://hdl.handle.net/10.1023/A:1008276509284
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Publisher Info
Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 11 (1998)
Issue (Month): 1 (January)
Pages: 35-59
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Handle: RePEc:kap:enreec:v:11:y:1998:i:1:p:35-59

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Related research
Keywords: environmental economics; environmental standards; firm exit; logit model; panel data;

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Klaus Conrad & Catherine J. Morrison, 1985. "The Impact of Pollution Abatement Investment on Productivity Change: AnEmpirical Comparison of the U.S., Germany, and Canada," NBER Working Papers 1763, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Dale W. Jorgenson & Peter J. Wilcoxen, 1990. "Environmental Regulation and U.S. Economic Growth," RAND Journal of Economics, The RAND Corporation, vol. 21(2), pages 314-340, Summer. [Downloadable!] (restricted)
  3. Audretsch, David B. & Mata, Jose, 1995. "The post-entry performance of firms: Introduction," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 413-419, December. [Downloadable!] (restricted)
  4. Gollop, Frank M & Roberts, Mark J, 1983. "Environmental Regulations and Productivity Growth: The Case of Fossil-Fueled Electric Power Generation," Journal of Political Economy, University of Chicago Press, vol. 91(4), pages 654-74, August. [Downloadable!] (restricted)
  5. Barbera, Anthony J & McConnell, Virginia D, 1986. "Effects of Pollution Control on Industry Productivity: A Factor Demand Approach," Journal of Industrial Economics, Blackwell Publishing, vol. 35(2), pages 161-72, December. [Downloadable!] (restricted)
  6. McFadden, Daniel L., 1984. "Econometric analysis of qualitative response models," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 24, pages 1395-1457 Elsevier. [Downloadable!] (restricted)
  7. Wayne B. Gray & Ronald J. Shadbegian, 1993. "Environmental Regulation and Manufacturing Productivity at the Plant Level," NBER Working Papers 4321, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Golombek, Rolf & Raknerud, Arvid, 1997. " Do Environmental Standards Harm Manufacturing Employment?," Scandinavian Journal of Economics, Blackwell Publishing, vol. 99(1), pages 29-44, March. [Downloadable!] (restricted)
  9. Doms, Mark & Dunne, Timothy & Roberts, Mark J., 1995. "The role of technology use in the survival and growth of manufacturing plants," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 523-542, December. [Downloadable!] (restricted)
  10. Deily, Mary E. & Gray, Wayne B., 1991. "Enforcement of pollution regulations in a declining industry," Journal of Environmental Economics and Management, Elsevier, vol. 21(3), pages 260-274, November. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Park, Dooho & Seidl, Andrew & Davies, Stephen & Frasier, W. Marshall, 2000. "Environmental Policy Influences On Livestock Stocking And Location Decisions," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36340, Western Agricultural Economics Association. [Downloadable!]
  2. Cees van Beers & Jeroen C.J.M. van den Bergh, 2000. "The Impact of Environmental Policy on Foreign Trade: Tobey revisited with a Bilateral Flow Model," Tinbergen Institute Discussion Papers 00-069/3, Tinbergen Institute. [Downloadable!]
  3. Peter Berck & Peter Hess, 2000. "Developing a methodology for assessing the economic impacts of large scale environmental regulations," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series 924, Department of Agricultural & Resource Economics, UC Berkeley. [Downloadable!]
  4. Park, Dooho & Davies, Stephen & Seidl, Andrew, 2001. "A Nationwide, State-Level, Analysis Of Animal Confinement Policy By Selected Species," 2001 Annual Meeting, July 8-11, 2001, Logan, Utah 36160, Western Agricultural Economics Association. [Downloadable!]
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