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An Industry-Adjusted Index of State Environmental Compliance Costs

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Author Info
Arik Levinson () (Department of Economics, Georgetown University)

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Abstract

This paper describes a new, industry-adjusted index of state environmental compliance costs from 1977 to 1994. The index has two principal advantages: It controls for states' industrial compositions, and it can be calculated for 17 years, thus facilitating comparisons both among states and within states over time. Several notable facts emerge. First, differences in states' industrial compositions play a large role in determining their environmental compliance costs. Second, after controlling for industrial composition, the variance across states in compliance costs declined steadily between 1977 and 1994. Third, this cost index is negatively correlated with subjective indices of state environmental efforts compiled by various environmental organizations. In sum, the cost index described here provides some new data on historical trends in state regulatory differences, differs from the conventional wisdom regarding states' relative environmental efforts, and provides a useful tool for researchers exploring the effects of compliance costs on economic activity.

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File URL: http://www.georgetown.edu/faculty/aml6/pdfs&zips/eindex.pdf
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Publisher Info
Paper provided by Georgetown University, Department of Economics in its series Working Papers with number gueconwpa~00-00-07.

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Length: 41
Date of creation: 29 Jul 1999
Date of revision:
Publication status: forthcoming
Handle: RePEc:geo:guwopa:gueconwpa~00-00-07

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Postal: Georgetown University Department of Economics Washington, DC 20057-1036
Phone: 202-687-6074
Fax: 202-687-6102
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Web page: http://econ.georgetown.edu/

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Postal: Marcia Suss Administrative Officer Georgetown University Department of Economics Washington, DC 20057-1036
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Web: http://econ.georgetown.edu/

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Find related papers by JEL classification:
Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
L6 - Industrial Organization - - Industry Studies: Manufacturing
R3 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location

References listed on IDEAS
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  1. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Blackwell Publishing, vol. 58(2), pages 277-97, April. [Downloadable!] (restricted)
  2. Eli Berman & Linda T. Bui, 1997. "Environmental Regulation and Labor Demand: Evidence from the South Coast Air Basin," Papers 0082, Boston University - Industry Studies Programme.
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  3. Wolfgang Keller & Arik Levinson, 1999. "Environmental Compliance Costs and Foreign Direct Investment Inflows to U.S. States," NBER Working Papers 7369, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. 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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  5. List, John A. & Co, Catherine Y., 2000. "The Effects of Environmental Regulations on Foreign Direct Investment," Journal of Environmental Economics and Management, Elsevier, vol. 40(1), pages 1-20, July. [Downloadable!] (restricted)
  6. Randy A. Becker & J. Vernon Henderson, 1999. "Costs of Air Quality Regulation," NBER Working Papers 7308, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Baltagi, Badi H. & Boozer, Michael A., 1997. "Econometric Analysis of Panel Data," Econometric Theory, Cambridge University Press, vol. 13(05), pages 747-754, October. [Downloadable!]
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Cited by:
(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. Henderson, Daniel & Millimet, Daniel, 2005. "Pollution Abatement Costs and Foreign Direct Investment Inflows to U.S. States: A Nonparametric Reassessment," Departmental Working Papers 0507, Southern Methodist University, Department of Economics. [Downloadable!]
    Other versions:
  2. Randy Becker, 2003. "Pollution Abatement Expenditure by U.S. Manufacturing Plants: Do Community Characteristics Matter?," Working Papers 03-18, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
    Other versions:
  3. repec:bep:eapcon:v:3:y:2004:i:2:p:1231-1231 is not listed on IDEAS
    Other versions:
  4. Arik Levinson, . "Environmental Regulatory Competition: A Status Report and Some New Evident," Working Papers gueconwpa~02-02-07, Georgetown University, Department of Economics. [Downloadable!]
  5. Per G. Fredriksson & John A. List & Daniel L. Millimet, 2003. "Chasing the Smokestack: Strategic Policymaking With Multiple Instruments," NBER Working Papers 9801, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  6. Roediger-Schluga, Thomas, 2002. "Some micro-evidence on the "Porter Hypothesis" from Austrian VOC emission standards," ERSA conference papers ersa02p290, European Regional Science Association. [Downloadable!]
    Other versions:
  7. Randy Becker, 2001. "Air Pollution Abatement Costs Under the Clean Air Act: Evidence from the PACE Survey," Working Papers 01-12, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
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  8. Hilary Sigman, 2006. "Environmental Liability and Redevelopment of Old Industrial Land," Departmental Working Papers 200609, Rutgers University, Department of Economics. [Downloadable!]
    Other versions:
  9. 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!]
  10. repec:bep:eaptop:v:7:y:2007:i:1:p:1668-1668 is not listed on IDEAS
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