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The Silver Lining of Rust Belt Manufacturing Decline

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  • Matthew E. Kahn

Abstract

Between 1970 and 1989, manufacturing jobs decreased by 2.9% at the national level while manufacturing growth fell by 23.6% in the Rust Belt. Cities which specialized in manufacturing experienced severe dislocations. One silver lining of reduced manufacturing activity is improved environmental quality. This paper exploits a unique merger of air quality and county manufacturing data to quantify manufacturing's pollution intensity by industry. These estimates are used to judge which Rust Belt cities experienced large environmental improvements. Valuation estimates are used to judge the economic magnitude of the pollution reduction. The incidence of this local land improvement and its impact on city quality of life dynamics are addressed.

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Bibliographic Info

Paper provided by Harvard - Institute of Economic Research in its series Harvard Institute of Economic Research Working Papers with number 1828.

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Date of creation: 1998
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Handle: RePEc:fth:harver:1828

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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Green Jobs Revisited: The Case of A123 Systems
    by Matthew E. Kahn in Environmental and Urban Economics on 2010-05-09 16:19:00
  2. Was Manufacturing Good for U.S Big Cities?
    by Matthew E. Kahn in Environmental and Urban Economics on 2012-04-22 22:22:00
  3. The Silver Lining of Rust Belt Decline: The Case of Taranto, Italy
    by Matthew Kahn in Environmental and Urban Economics on 2012-12-10 15:31:00
  4. The Silver Lining of Rust Belt Decline: The Case of Taranto, Italy
    by Matthew Kahn in Urbanization Project on 2012-12-11 18:34:22
  5. A Preview of Chapter Four of My New Amazon Kindle Book
    by Matthew Kahn in Environmental and Urban Economics on 2013-07-27 03:04:00
  6. The Evolving Geography of China's Industrial Production
    by Matthew Kahn in Environmental and Urban Economics on 2013-11-09 14:27:00
  7. Does China's Production of Export Goods Cause Serious Pigouvian Damage to the Western United States?
    by Matthew Kahn in Environmental and Urban Economics on 2014-01-21 00:40:00
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Matthew A. Cole & Robert J R Elliott & Toshihiro Okubo & Ying Zhou, 2012. "The Carbon Dioxide Emissions of Firms: A Spatial Analysis," Keio/Kyoto Joint Global COE Discussion Paper Series 2012-003, Keio/Kyoto Joint Global COE Program.
  2. Shadbegian Ronald J & Gray Wayne B, 2003. "What Determines Environmental Performance at Paper Mills? The Roles of Abatement Spending, Regulation, and Efficiency," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(1), pages 1-20, November.
  3. Siqi Zheng & Jing Cao & Matthew Kahn & Cong Sun, 2014. "Real Estate Valuation and Cross-Boundary Air Pollution Externalities: Evidence from Chinese Cities," The Journal of Real Estate Finance and Economics, Springer, vol. 48(3), pages 398-414, April.
  4. Gray, Wayne B. & Shadbegian, R.J.Ronald J., 2004. "'Optimal' pollution abatement--whose benefits matter, and how much?," Journal of Environmental Economics and Management, Elsevier, vol. 47(3), pages 510-534, May.
  5. Matthew E. Kahn, 2010. "New Evidence on Trends in the Cost of Urban Agglomeration," NBER Chapters, in: Agglomeration Economics, pages 339-354 National Bureau of Economic Research, Inc.
  6. Wayne B. Gray & Ronald J. Shadbegian, 2007. "The Environmental Performance Of Polluting Plants: A Spatial Analysis," Journal of Regional Science, Wiley Blackwell, vol. 47(1), pages 63-84.
  7. Cole, Matthew A. & Elliott, Robert J.R. & Wu, Shanshan, 2008. "Industrial activity and the environment in China: An industry-level analysis," China Economic Review, Elsevier, vol. 19(3), pages 393-408, September.
  8. Millimet, Daniel L., 2013. "Environmental Federalism: A Survey of the Empirical Literature," IZA Discussion Papers 7831, Institute for the Study of Labor (IZA).
  9. 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.
  10. Gilles Duranton, 2002. "City size distributions as a consequence of the growth process," LSE Research Online Documents on Economics 20065, London School of Economics and Political Science, LSE Library.
  11. Siqi Zheng & Matthew E. Kahn, 2013. "Understanding China's Urban Pollution Dynamics," Journal of Economic Literature, American Economic Association, vol. 51(3), pages 731-72, September.
  12. World Bank, 2011. "Russia : Reshaping Economic Geography," World Bank Other Operational Studies 13052, The World Bank.
  13. Daniel L. Millimet & Esfandiar Maasoumi, 2005. "Robust inference concerning recent trends in US environmental quality," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 55-77.
  14. Becker, Randy A., 2005. "Air pollution abatement costs under the Clean Air Act: evidence from the PACE survey," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 144-169, July.
  15. Kahn, Matthew E., 2009. "Regional growth and exposure to nearby coal fired power plant emissions," Regional Science and Urban Economics, Elsevier, vol. 39(1), pages 15-22, January.

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