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Air Pollution Abatement Costs Under the Clean Air Act: Evidence from the PACE Survey

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Author Info
Randy Becker

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Abstract

This paper uses establishment-level data from the U.S. Census Bureau’s Pollution Abatement Costs and Expenditures (PACE) survey to investigate the effects of air quality regulation on the air pollution abatement capital expenditures and operating costs of manufacturing plants from 1979-1988. Results, based on some 90,000 observations, show that heavy emitters of the “criteria” air pollutants (covered under the Clean Air Act) had significantly larger APA costs, and those subject to greater “local” regulation (due to county NAAQS non-attainment) had expenditures that were greater still. The local regulation of a particular air pollutant generally resulted in hundreds of thousands of dollars (or more) of additional costs, with larger establishments and capital expenditures disproportionately affected. Federal and state environmental standards appear to have played a notable role, particularly in industries producing chemicals, petroleum, primary metals, and nonmetallic minerals. The findings of this paper support those of several recent studies.

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File URL: http://www.ces.census.gov/index.php/ces/cespapers?down_key=101627
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Publisher Info
Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 01-12.

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Date of creation: Dec 2001
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Handle: RePEc:cen:wpaper:01-12

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Web page: http://www.ces.census.gov

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Related research
Keywords: CES; economic; research; micro; data; microdata; chief; economist;

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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.:
  1. Gray, Wayne B. & Deily, Mary E., 1996. "Compliance and Enforcement: Air Pollution Regulation in the U.S. Steel Industry," Journal of Environmental Economics and Management, Elsevier, vol. 31(1), pages 96-111, July. [Downloadable!] (restricted)
  2. Kenneth Y. Chay & Michael Greenstone, 2005. "Does Air Quality Matter? Evidence from the Housing Market," Journal of Political Economy, University of Chicago Press, vol. 113(2), pages 376-424, April.
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  3. Henderson, J Vernon, 1996. "Effects of Air Quality Regulation," American Economic Review, American Economic Association, vol. 86(4), pages 789-813, September. [Downloadable!] (restricted)
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  4. Diane Hite, 2000. "A Random Utility Model of Environmental Equity," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 31(1), pages 40-58. [Downloadable!] (restricted)
  5. Dean, Thomas J. & Brown, Robert L. & Stango, Victor, 2000. "Environmental Regulation as a Barrier to the Formation of Small Manufacturing Establishments: A Longitudinal Examination," Journal of Environmental Economics and Management, Elsevier, vol. 40(1), pages 56-75, July. [Downloadable!] (restricted)
  6. Kahn, Matthew E., 1997. "Particulate pollution trends in the United States," Regional Science and Urban Economics, Elsevier, vol. 27(1), pages 87-107, February. [Downloadable!] (restricted)
  7. Randy A. Becker & J. Vernon Henderson, 2001. "Costs of Air Quality Regulation," NBER Chapters, in: Behavioral and Distributional Effects of Environmental Policy, pages 159-186 National Bureau of Economic Research, Inc. [Downloadable!]
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  8. Arik Levinson, 2001. "An Industry-Adjusted Index of State Environmental Compliance Costs," NBER Chapters, in: Behavioral and Distributional Effects of Environmental Policy, pages 131-158 National Bureau of Economic Research, Inc. [Downloadable!]
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  9. Adam B. Jaffe et al., 1995. "Environmental Regulation and the Competitiveness of U.S. Manufacturing: What Does the Evidence Tell Us?," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 132-163, March. [Downloadable!] (restricted)
  10. Wayne B. Gray & Ronald J. Shadbegian, 1995. "Pollution Abatement Costs, Regulation, and Plant-Level Productivity," NBER Working Papers 4994, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  11. Carlo Carraro & Gilbert E. Metcalf, 2000. "Behavioral and Distributional Effects of Environmental Policy: Introduction," Discussion Papers Series, Department of Economics, Tufts University 0011, Department of Economics, Tufts University. [Downloadable!]
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  12. Randy Becker & Vernon Henderson, 2000. "Effects of Air Quality Regulations on Polluting Industries," Journal of Political Economy, University of Chicago Press, vol. 108(2), pages 379-421, April. [Downloadable!] (restricted)
  13. Wayne B. Gray, 1997. "Manufacturing Plant Location: Does State Pollution Regulation Matter?," NBER Working Papers 5880, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  14. Kahn, Matthew E & Matsusaka, John G, 1997. "Demand for Environmental Goods: Evidence from Voting Patterns on California Initiatives," Journal of Law & Economics, University of Chicago Press, vol. 40(1), pages 137-73, April.
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  15. Levinson, Arik, 1996. "Environmental regulations and manufacturers' location choices: Evidence from the Census of Manufactures," Journal of Public Economics, Elsevier, vol. 62(1-2), pages 5-29, October. [Downloadable!] (restricted)
  16. John A. List & W. Warren McHone, 2000. "Measuring the effects of air quality regulations on "dirty" firm births: Evidence from the neo- and mature-regulatory periods," Papers in Regional Science, Springer, vol. 79(2), pages 177-190. [Downloadable!] (restricted)
  17. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-44, September. [Downloadable!] (restricted)
  18. Pashigian, B Peter, 1984. "The Effect of Environmental Regulation on Optimal Plant Size and Factor Shares," Journal of Law & Economics, University of Chicago Press, vol. 27(1), pages 1-28, April.
  19. Kahn, Matthew E., 1999. "The Silver Lining of Rust Belt Manufacturing Decline," Journal of Urban Economics, Elsevier, vol. 46(3), pages 360-376, November. [Downloadable!] (restricted)
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(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. repec:bep:eaptop:v:3:y:2003:i:1:p:1144-1144 is not listed on IDEAS
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  2. Michael Greenstone, 2001. "The Impacts of Environmental Regulations on Industrial Activity: Evidence from the 1970 & 1977 Clean Air Act Amendments and the Census of Manufactures," NBER Working Papers 8484, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Ronald Shadbegian & Wayne Gray, 2005. "Assessing Multi-Dimensional Performance: Environmental and Economic Outcomes," Working Papers 05-03, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
    Other versions:
  4. Ronald Shadbegian & Randy Becker, 2004. "A Change of PACE: Comparing the 1994 and 1999 Pollution Abatement Costs and Expenditures Surveys," Working Papers 04-09, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
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This page was last updated on 2009-11-13.

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