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The Green Industry: An Examination of Environmental Products Manufacturing

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  • Randy Becker
  • Ronald Shadbegian

Abstract

The "green industry" is often noted in discussions of the costs and benefits of environmental policy, and it has been characterized as a unique industry with substantial potential for employment growth, well-paying jobs, and export opportunities. In this paper, we examine the characteristics and recent economic performance of the green industry, using establishment-level data on environmental products manufacturers (EPMs) from the 1995 Survey of Environmental Products and Services, together with data from the Annual Survey of Manufactures and various Census of Manufactures. Results suggest that there are some differences between EPMs and their non-EPM counterparts in the same industry, in terms of employment, employee compensation, exports, and productivity. However, we do not find any evidence that EPMs performed any better than otherwise similar plants, in terms of survival, employment growth, wage growth, and export growth. Our findings offer a more complex and nuanced portrayal of the green industry than is typical, and we suggest that this industry may not be as exceptional as is sometimes maintained.

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File URL: ftp://ftp2.census.gov/ces/wp/2008/CES-WP-08-34.pdf
File Function: First version, 2008
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Bibliographic Info

Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 08-34.

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Length: 39 pages
Date of creation: Sep 2008
Date of revision:
Handle: RePEc:cen:wpaper:08-34

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Keywords: green industry; environmental products; employment; wages; exports; productivity; growth;

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References

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  1. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, The MIT Press, edition 1, volume 1, number 0262540932, December.
  2. Lucia Foster & John Haltiwanger & Chad Syverson, 2008. "Reallocation, Firm Turnover, and Efficiency: Selection on Productivity or Profitability?," American Economic Review, American Economic Association, American Economic Association, vol. 98(1), pages 394-425, March.
  3. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, American Economic Association, vol. 70(3), pages 474-75, June.
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Cited by:
  1. Simone Borghesi & Giulio Cainelli & Massimiliano Mazzanti, 2012. "Brown Sunsets and Green Dawns in the Industrial Sector: Environmental Innovations, Firm Behavior and the European Emission Trading," Working Papers, Fondazione Eni Enrico Mattei 2012.03, Fondazione Eni Enrico Mattei.
  2. De Gobbi, Maria Sabrina, 2011. "Mainstreaming environmental issues in sustainable enterprises : an exploration of issues, experiences and options," ILO Working Papers, International Labour Organization 462097, International Labour Organization.
  3. Roberto Antonietti & Alberto Marzucchi, 2013. "Green Investment Strategies and Export Performance: A Firm-level Investigation," Working Papers, Fondazione Eni Enrico Mattei 2013.76, Fondazione Eni Enrico Mattei.
  4. Costantini, Valeria & Mazzanti, Massimiliano, 2012. "On the green and innovative side of trade competitiveness? The impact of environmental policies and innovation on EU exports," Research Policy, Elsevier, Elsevier, vol. 41(1), pages 132-153.

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