Conventional wisdom implies economic growth and environmental quality are incompatible policy objectives. Recent empirical evidence, however, suggests stringency of environmental regulations are only weakly (or not at all) associated with decreased manufacturing activity. This paper uses more recent (1982-1994) state-level panel data to test if environmental regulations affect manufacturing employment. Estimation results from our three-stage sample selection panel data model suggest that state environmental regulations adversely affect job growth in three of the four industries analyzed.
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Article provided by University of Wisconsin Press in its journal Land Economics.
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Find related papers by JEL classification: Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
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