Spatial Heterogeneity in Environmental Regulation Enforcement and the Firm Location Decision among U.S. Counties
AbstractWe estimate a negative binomial model with fixed effects to examine the impact of spatial differences in environmental regulation on manufacturing capital flows. Using a newly available data set, we find that stricter air quality standards with respect to ozone deter births of polluting plants, suggesting that heterogeneity in regulatory standards may create a spatial browning process. We also find that spatial differences in environmental regulation do not play a role in the location decision of plants that are not pollution-intensive. Finally, we also examine the effects on capital flows with respect to three other criteria air pollutants regulated under the amendments to the Clean Air Act. We find that births of particulates-intensive manufacturers are deterred by stricter regulation with respect to particulates emissions but the location decisions of plants that emit high levels of carbon monoxide and sulfur dioxide are not significantly affected by increased regulation of the respective criteria pollutant.
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Bibliographic InfoArticle provided by Southern Regional Science Association in its journal Review of Regional Studies.
Volume (Year): 39 (2009)
Issue (Month): 3 ()
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Web page: http://www.srsa.org
Air Quality; Environmental Regulation; Firm Location; Pollutant; Polluting; Pollution; Regulation; Spatial;
Other versions of this item:
- O. Ashton Morgan & Simon Condliffe, 2009. "Spatial Heterogeneity in Environmental Regulation Enforcement and the Firm Location Decision among U.S. Counties," Working Papers 09-12, Department of Economics, Appalachian State University.
- H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
- Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
- Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
- R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
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