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The Missing Pollution Haven Effect

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  • Arik Levinson

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Abstract

This paper examines the effect of recent increases inhazardous waste disposal taxes on employment growth inindustries that generate hazardous waste. Mostexisting literature has found that interjurisdictionaldifferences in environmental stringency havenegligible measurable economic consequences. Commonexplanations for this lack of effect include claimsthat (1) measures of environmental stringency arepoorly quantified, (2) compliance costs are modest,(3) variation in compliance costs among jurisdictionsis small, and (4) cross-section data are insufficientto explore the consequences of increasingly stringentstandards. This paper addresses these four concernsby quantifying hazardous waste disposal taxes,demonstrating that they are large and varied acrossjurisdictions in the United States, and showing thatthey have had a significant effect on hazardous wasteshipping among states. The paper then uses a panel ofstate and county-level data to show that despite thesefindings, state hazardous waste disposal taxes do notimpose large employment losses on industries thatgenerate waste. Copyright Kluwer Academic Publishers 2000

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File URL: http://hdl.handle.net/10.1023/A:1008324605045
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Bibliographic Info

Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 15 (2000)
Issue (Month): 4 (April)
Pages: 343-364

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Handle: RePEc:kap:enreec:v:15:y:2000:i:4:p:343-364

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Web page: http://www.springerlink.com/link.asp?id=100263

Related research

Keywords: employment; hazardous waste; local environmental regulations; pollution tax;

References

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  1. Adam B. Jaffe et al., 1995. "Environmental Regulation and the Competitiveness of U.S. Manufacturing: What Does the Evidence Tell Us?," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 132-163, March.
  2. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
  3. Timothy J. Bartik, 2003. "Local Economic Development Policies," Upjohn Working Papers and Journal Articles 03-91, W.E. Upjohn Institute for Employment Research.
  4. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle.
  5. Sigman, Hilary, 1996. "The Effects of Hazardous Waste Taxes on Waste Generation and Disposal," Journal of Environmental Economics and Management, Elsevier, vol. 30(2), pages 199-217, March.
  6. Randy A. Becker & J. Vernon Henderson, 1999. "Costs of Air Quality Regulation," NBER Working Papers 7308, National Bureau of Economic Research, Inc.
    • Randy A. Becker & J. Vernon Henderson, 2001. "Costs of Air Quality Regulation," NBER Chapters, in: Behavioral and Distributional Effects of Environmental Policy, pages 159-186 National Bureau of Economic Research, Inc.
  7. Levinson, Arik, 1999. "NIMBY taxes matter: the case of state hazardous waste disposal taxes," Journal of Public Economics, Elsevier, vol. 74(1), pages 31-51, October.
  8. Holtz-Eakin, Douglas & Newey, Whitney & Rosen, Harvey S, 1988. "Estimating Vector Autoregressions with Panel Data," Econometrica, Econometric Society, vol. 56(6), pages 1371-95, November.
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Citations

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Cited by:
  1. Kukenova, Madina & Monteiro, Jose-Antonio, 2008. "Does Lax Environmental Regulation Attract FDI when accounting for "third-country" effects?," MPRA Paper 11321, University Library of Munich, Germany, revised Sep 2008.
  2. Cave, Lisa A. & Blomquist, Glenn C., 2008. "Environmental policy in the European Union: Fostering the development of pollution havens?," Ecological Economics, Elsevier, vol. 65(2), pages 253-261, April.
  3. Federman, Maya & Levine, David I., 2005. "Industrialization and Infant Mortality," Center for International and Development Economics Research, Working Paper Series qt85j7s6s6, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
  4. Nicolas Peridy, 2006. "Pollution effects of free trade areas: Simulations from a general equilibrium model," International Economic Journal, Taylor & Francis Journals, vol. 20(1), pages 37-62.
  5. Paul Missios & Halis Murat Yildiz & Ida Ferrara, 2009. "Foreign Direct Investment and the Choice of Environmental Policy," Working Papers 004, Ryerson University, Department of Economics.

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