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Measuring the effects of air quality regulations on "dirty" firm births: Evidence from the neo- and mature-regulatory periods

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Author Info

  • John A. List

    ()
    (Department of Economics, College of Business, University of Central Florida, Orlando, FL 32816-1400, USA)

  • W. Warren McHone

    ()
    (Department of Economics, College of Business, University of Central Florida, Orlando, FL 32816-1400, USA)

Abstract

In this article, we use annual (1980-90) county-level manufacturing plant location data for New York State to examine the effects of the 1977 Clean Air Act Amendments on the location decisions of new pollution-intensive manufacturing plants in the &ldquo:neo-regulatory" (1980-84) and "mature-regulatory" (1985-90) phases of the Act's implementation. Our results suggest that the temporal effects of regulation vary. Whereas the location decisions of pollution intensive manufacturing firms were unaffected by the Act's regulatory restrictions in the "neo-regulatory" period, the restrictions appear to have had a significant negative impact on the location decisions of these types of firms in the Act's "mature-regulatory" phase. The diversion of new pollution intensive plants to counties with less stringent environmental regulations suggests that current US environmental regulations may be leading to a "browning process" whereby counties historically free of pollution become havens for polluters.

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Bibliographic Info

Article provided by Springer in its journal Papers in Regional Science.

Volume (Year): 79 (2000)
Issue (Month): 2 ()
Pages: 177-190

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Handle: RePEc:spr:presci:v:79:y:2000:i:2:p:177-190

Note: Received: 2 April 1999
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Related research

Keywords: Firm location; environmental regulations;

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Cited by:
  1. Arauzo Carod, Josep Maria, 2007. "Industrial location at a local level: some comments about the territorial level of the analysis," Working Papers 2072/4178, Universitat Rovira i Virgili, Department of Economics.
  2. Miguel C. Manjon-Antolin & Josep Maria Arauzo-Carod, 2006. "Locations and Relocations: Modelling, Determinants, and Interrelations," ERSA conference papers ersa06p33, European Regional Science Association.
  3. Sturm, Daniel & Ulph, Alistair, 2002. "Environment, trade, political economy and imperfect information: a survey," Discussion Paper Series In Economics And Econometrics 0204, Economics Division, School of Social Sciences, University of Southampton.
  4. Becker, Randy A., 2005. "Air pollution abatement costs under the Clean Air Act: evidence from the PACE survey," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 144-169, July.
  5. Kim, Kijin, 2013. "The Effects of the Clean Air Act on Local Industrial Wages," 6th Annual CRAE, April 5-6, 2013, Columbus, Ohio 147489, Midwest Graduate Student Conference on Regional and Applied Economics (CRAE), The Ohio State University, Department of Agricultural, Environmental and Development Economics.
  6. Arauzo Carod, Josep Maria & Liviano, Daniel, 2007. "Agglomeration and location: a nonparametric approach," Working Papers 2072/4288, Universitat Rovira i Virgili, Department of Economics.
  7. 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.
  8. Simon Condliffe & O. Ashton Morgan, 2009. "The effects of air quality regulations on the location decisions of pollution-intensive manufacturing plants," Journal of Regulatory Economics, Springer, vol. 36(1), pages 83-93, August.
  9. Arauzo Carod, Josep Maria & Liviano Solís, Daniel & Manjón Antolín, Miguel C., 2008. "Empirical studies in industrial location: an assessment of their methods and results," Working Papers 2072/9257, Universitat Rovira i Virgili, Department of Economics.
  10. Becker Randy A, 2003. "Pollution Abatement Expenditure by U.S. Manufacturing Plants: Do Community Characteristics Matter?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(2), pages 1-23, December.
  11. Douglas A. Carr, 2011. "The Intergovernmental Fiscal Effects of the Clean Air Act," Public Finance Review, , vol. 39(6), pages 810-830, November.
  12. Rauscher, Michael, 2001. "International Trade, Foreign Investment, and the Enivronment," Thuenen-Series of Applied Economic Theory 29, University of Rostock, Institute of Economics.
  13. Hoffman, Joan, 2008. "Watershed shift: Collaboration and employers in the New York City Catskill/Delaware Watershed from 1990-2003," Ecological Economics, Elsevier, vol. 68(1-2), pages 141-161, December.

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