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The Impacts of Environmental Regulations on Industrial Activity: Evidence from the 1970 and 1977 Clean Air Act Amendments and the Census of Manufactures

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Author Info
Michael Greenstone

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Abstract

This paper estimates the impacts of the Clean Air Act's division of counties into pollutant-specific nonattainment and attainment categories on measures of industrial activity obtained from 1.75 million plant observations from the Census of Manufactures. Emitters of the controlled pollutants in nonattainment counties were subject to greater regulatory oversight than emitters in attainment counties. The preferred statistical model for plant-level growth includes plant fixed effects, industry by period fixed effects, and county by period fixed effects. The estimates from this model suggest that in the first 15 years in which the Clean Air Act was in force (197287), nonattainment counties (relative to attainment ones) lost approximately 590,000 jobs, $37 billion in capital stock, and $75 billion (1987 dollars) of output in pollution-intensive industries. These findings are robust across many specifications, and the effects are apparent in many polluting industries.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Political Economy.

Volume (Year): 110 (2002)
Issue (Month): 6 (December)
Pages: 1175-1219
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Handle: RePEc:ucp:jpolec:v:110:y:2002:i:6:p:1175-1219

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
  3. repec:fth:coluec:9596-19 is not listed on IDEAS
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    Other versions:
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    Other versions:
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. ISHIKAWA Jota & OKUBO Toshihiro, 2009. "Greenhouse-Gas Emission Controls and International Carbon Leakage through Trade Liberalization," Discussion papers 09008, Research Institute of Economy, Trade and Industry (RIETI). [Downloadable!]
    Other versions:
  2. Massimiliano Mazzanti & Roberto Zoboli, 2006. "Examining the Factors Influencing Environmental Innovations," Working Papers 2006.20, Fondazione Eni Enrico Mattei. [Downloadable!]
  3. Ralf Martin & Ulrich J. Wagner & Laure B. de Preux, 2009. "The Impacts of the Climate Change Levy on business: Evidence from Microdata," CEP Discussion Papers dp0917, Centre for Economic Performance, LSE. [Downloadable!]
  4. Nick Bloom & Christos Genakos & Ralf Martin & Raffaella Sadun, 2008. "Modern Management: Good for the Environment or Just Hot Air?," CEP Discussion Papers dp0891, Centre for Economic Performance, LSE. [Downloadable!]
    Other versions:
  5. Katrin Millock & Céline Nauges, 2003. "The French Tax on Air Pollution: Some Preliminary Results on its Effectiveness," Working Papers 2003.44, Fondazione Eni Enrico Mattei. [Downloadable!]
  6. Siqi Zheng & Matthew E. Kahn & Hongyu Liu, 2009. "Towards a System of Open Cities in China: Home Prices, FDI Flows and Air Quality in 35 Major Cities," NBER Working Papers 14751, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Roberto A. De Santis & Frank Stähler, 2008. "Foreign direct investment and environmental taxes," Working Paper Series 921, European Central Bank. [Downloadable!]
    Other versions:
  8. Paul Dolan & Robert Metcalfe, 2008. "Comparing Willingness-to-Pay and Subjective Well-Being in the Context of Non-Market Goods," CEP Discussion Papers dp0890, Centre for Economic Performance, LSE. [Downloadable!]
  9. Sneeringer, Stacy E., 2009. "Effects of Environmental Regulation on Economic Activity and Pollution in Commercial Agriculture," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46591, Southern Agricultural Economics Association. [Downloadable!]
  10. Timothy Dunne & Xiaoyi Mu, 2008. "Investment spikes and uncertainty in the petroleum refining industry," Working Paper 0805, Federal Reserve Bank of Cleveland. [Downloadable!]
  11. Meredith Fowlie, 2008. "Incomplete Environmental Regulation, Imperfect Competition, and Emissions Leakage," NBER Working Papers 14421, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  12. Michael Greenstone & Ted Gayer, 2007. "Quasi-Experimental and Experimental Approaches to Environmental Economics," Working Papers 0713, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research. [Downloadable!]
    Other versions:
  13. Ho, Mun S. & Morgenstern, Richard & Shih, Jhih-Shyang, 2008. "Impact of Carbon Price Policies on U.S. Industry," Discussion Papers dp-08-37, Resources For the Future. [Downloadable!]
  14. Copeland, Brian R., 2005. "Policy Endogeneity and the Effects of Trade on the Environment," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(1), April. [Downloadable!]
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This page was last updated on 2009-11-16.

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