How Do Energy Prices, and Labor and Environmental Regulations Affect Local Manufacturing Employment Dynamics? A Regression Discontinuity Approach
AbstractManufacturing industries differ with respect to their energy intensity, labor-to-capital ratio and their pollution intensity. Across the United States, there is significant variation in electricity prices and labor and environmental regulation. This paper uses a regression discontinuity approach to examine whether the basic logic of comparative advantage can explain the geographical clustering of U.S. manufacturing. Using a unified empirical framework, we document that energy-intensive industries concentrate in low electricity price counties, labor-intensive industries avoid pro-union counties, and pollution-intensive industries locate in counties featuring relatively lax Clean Air Act regulation. We use our estimates to predict the likely jobs impacts of regional carbon mitigation efforts.
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Date of creation: Nov 2010
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Find related papers by JEL classification:
- L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
- L38 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Policy
- L6 - Industrial Organization - - Industry Studies: Manufacturing
- Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- The WSJ on the Costs of State Level Carbon Cap & Trade
by Matthew E. Kahn in Environmental and Urban Economics on 2011-06-03 14:51:00
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by Matthew E. Kahn in Environmental and Urban Economics on 2011-05-07 16:53:00
- A Response to Fellow Climate Change Nerds
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- Unions and Economic Growth
by Matthew Kahn in the reality-based community on 2011-02-28 15:20:26
- My OP-ED Piece about California's Anti-Carbon Legislation
by Matthew Kahn in Environmental and Urban Economics on 2012-08-16 15:30:00
- Will AB32 Lead to Manufacturing Job Loss in California?
by Matthew E. Kahn in The Reality-Based Community on 2013-01-19 18:53:27
- Mexico as a Lead Pollution Haven
by Matthew E. Kahn in Legal Planet on 2013-02-09 16:05:09
- IZA's New Environment and Employment Group
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- Zhang, Chuanchuan, 2012.
[Age at marriage and marital stability: evidence from a regression discontinuity design]," MPRA Paper 38809, University Library of Munich, Germany.
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