The Effect of Emissions on U.S. State Total Factor Productivity Growth
AbstractThis paper investigates the effect of sulphur dioxide (SO2) and nitrogen oxide (NOx) emissions on the Total Factor Productivity (TFP) growth among 48 contiguous U.S. states, for the period 1965-2002. The relationship between TFP growth and emissions is examined using nonparametric econometric techniques that allow for the estimation of the elasticity of pollution for each state and each period and to account for possible nonlinearities in the data. The results indicate that both pollutants positively affect TFP growth. Moreover this effect is nonlinear. The average output elasticity for all states is 0.005 for SO2 and 0.04 for NOx emissions.
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Bibliographic InfoArticle provided by Rimini Centre for Economic Analysis in its journal Review of Economic Analysis.
Volume (Year): 3 (2011)
Issue (Month): 2 (October)
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TFP growth; emissions; semiparametric estimation;
Find related papers by JEL classification:
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
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