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Does Environmental Protection Lead to Slower Productivity Growth in the Chemical Industry?

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  • Bruce Domazlicky
  • William Weber

    ()

Abstract

Efficiency and productivity growth is measured at the three-digit SIC level for six chemical industries for 1988–1993. The directional distance function is used to measure the lost chemical manufacturing output and the overproduction of toxic chemical releases. Total factor productivity growth is decomposed into a product of efficiency change and technical change. Accounting for toxic chemical releases, productivity grows at anannual rate of between 2.4% and 6.9%. We find no evidence that environmental protection measures reduce productivity growth. Copyright Kluwer Academic Publishers 2004

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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): 28 (2004)
Issue (Month): 3 (July)
Pages: 301-324

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Handle: RePEc:kap:enreec:v:28:y:2004:i:3:p:301-324

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

Related research

Keywords: directional distance function; productivity growth;

References

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  1. Barbera, Anthony J. & McConnell, Virginia D., 1990. "The impact of environmental regulations on industry productivity: Direct and indirect effects," Journal of Environmental Economics and Management, Elsevier, vol. 18(1), pages 50-65, January.
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  7. William L. Weber & Bruce Domazlicky, 2001. "Productivity Growth and Pollution in State Manufacturing," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 195-199, February.
  8. Fare, Rolf, et al, 1993. "Derivation of Shadow Prices for Undesirable Outputs: A Distance Function Approach," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 374-80, May.
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  10. Alicia H. Munnell, 1990. "How does public infrastructure affect regional economic performance?," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 34, pages 69-112.
  11. Adam B. Jaffe & Karen Palmer, 1997. "Environmental Regulation And Innovation: A Panel Data Study," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 610-619, November.
  12. Pittman, Russell W, 1983. "Multilateral Productivity Comparisons with Undesirable Outputs," Economic Journal, Royal Economic Society, vol. 93(372), pages 883-91, December.
  13. 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.
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  15. J. R. Norsworthy & Michael J. Harper & Kent Kunze, 1979. "The Slowdown in Productivity Growth: Analysis of Some Contributing factors," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 10(2), pages 387-422.
  16. Cormier, Denis & Magnan, Michel & Morard, Bernard, 1993. "The impact of corporate pollution on market valuation: some empirical evidence," Ecological Economics, Elsevier, vol. 8(2), pages 135-155, October.
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Citations

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Cited by:
  1. Alessandro Manello, 2011. "Environment and economic efficiency: an analysis of some polluting Italian industries," CERIS Working Paper 201103, Institute for Economic Research on Firms and Growth - Moncalieri (TO).
  2. Leeuwen, George van & Mohnen, Pierre, 2013. "Revisiting the porter hypothesis: An empirical analysis of green innovation for the Netherlands," MERIT Working Papers 002, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  3. Falavigna, Greta & Manello, Alessandro & Pavone, Sara, 2013. "Environmental efficiency, productivity and public funds: The case of the Italian agricultural industry," Agricultural Systems, Elsevier, vol. 121(C), pages 73-80.
  4. Jens Kjærsgaard & Niels Vestergaard & Kristiaan Kerstens, 2009. "Ecological Benchmarking to Explore Alternative Fishing Schemes to Protect Endangered Species by Substitution: The Danish Demersal Fishery in the North Sea," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 43(4), pages 573-590, August.
  5. Martini, Gianmaria & Manello, Alessandro & Scotti, Davide, 2013. "The influence of fleet mix, ownership and LCCs on airports’ technical/environmental efficiency," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 50(C), pages 37-52.
  6. Managi, Shunsuke & Kaneko, Shinji, 2009. "Environmental performance and returns to pollution abatement in China," Ecological Economics, Elsevier, vol. 68(6), pages 1643-1651, April.
  7. Lisann Krautzberger & Heike Wetzel, 2012. "Transport and CO 2: Productivity Growth and Carbon Dioxide Emissions in the European Commercial Transport Industry," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 53(3), pages 435-454, November.
  8. Laurens Cherchye & Timo Kuosmanen & Hervé Leleu, 2008. "Technical and economic efficiency measures under short run profit maximizing behavior," Working Papers 2008-ECO-05, IESEG School of Management.
  9. Krautzberger, Lisann & Wetzel, Heike, 2011. "Transport and CO2: Productivity Growth and Carbon Dioxide Emissions in the European Commercial Transport Industry," EWI Working Papers 2011-13, Energiewirtschaftliches Institut an der Universitaet zu Koeln.
  10. Kaneko, Shinji & Fujii, Hidemichi & Sawazu, Naoya & Fujikura, Ryo, 2010. "Financial allocation strategy for the regional pollution abatement cost of reducing sulfur dioxide emissions in the thermal power sector in China," Energy Policy, Elsevier, vol. 38(5), pages 2131-2141, May.
  11. Cuesta, Rafael A. & Lovell, C.A. Knox & Zofío, José L., 2009. "Environmental efficiency measurement with translog distance functions: A parametric approach," Ecological Economics, Elsevier, vol. 68(8-9), pages 2232-2242, June.
  12. Alessandro Manello & Matteo Ferraris, 2013. "Eco-Efficiency in the Italian Waste Management sector," CERIS Working Paper 201312, Institute for Economic Research on Firms and Growth - Moncalieri (TO).

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