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The Silver Lining Of Rust Belt Manufacturing Decline: Killing Off Pollution Externalities

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  • Matthew E Kahn

Abstract

This paper expoloits a unique merger of air quality and county manufacturing data to quantify manufacturing's pollution externality by industry. By linking pollution to local production, I estimate cross-sectional pollution production regressions. Rust Belt cities that were endowed with the largest concentrations of the dirtiest industries experience reduced pollution externalities. I estimate that Gary, Indiana adn Pittsburgh, Pennsylvania experienced substantial pollution declines as local primary metals activity declined in the 1970s and 1980s.

Suggested Citation

  • Matthew E Kahn, 1997. "The Silver Lining Of Rust Belt Manufacturing Decline: Killing Off Pollution Externalities," Working Papers 97-7, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:97-7
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    File URL: https://www2.census.gov/ces/wp/1997/CES-WP-97-07.pdf
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    Cited by:

    1. 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.
    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.
    3. Edward L. Glaeser, 1998. "Are Cities Dying?," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 139-160, Spring.
    4. Nordström, Håkan & Vaughan, Scott, 1999. "Trade and the environment," WTO Special Studies, World Trade Organization (WTO), Economic Research and Statistics Division, volume 4, number 4.

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