Effects of Air Quality Regulation
AbstractThis paper investigates the effects of local regulatory effort on ground level ozone air quality and on industrial location. Local regulatory effort varies by annual air quality attainment status and by state attitudes towards the environment. A switch from attainment to non-attainment status induces greater regulatory effort in a county, leading to an improvement in air quality. Air quality readings for ground level ozone improve by 3-8% depending on the exact air quality measure, following a switch to non-attainment status. Pro-environment states, which ceteris paribus, spend relatively more on pollution abatement also have cleaner air. A 1% increase in typical annual state pollution abatement expenditures leads to about a .04% improvement in local ozone readings. Heavily polluting industries show a tendency to move to counties with a record of clean air, where they are less likely to be hassled. A county switching to having a three-year record of attainment experiences a 7-9% growth in the number of heavily polluting establishments. This implies polluting industries are spreading out geographically moving from non- attainment (polluted) areas to attainment (initially less polluted) areas. Finally, for ozone, localities may improve the annual hourly extreme value reading used to measure officially local air quality, without improving measures (mean, medians, medians of daily maximum) of more typical ozone conditions. This occurs by spreading out economic activity over the day to dampen peaks of ozone inducing activity and subsequent daily ozone peaks.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5118.
Date of creation: May 1995
Date of revision:
Publication status: published as American Economic Review, 1996, 86, pp.789-813.
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Other versions of this item:
- H00 - Public Economics - - General - - - General
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
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.:
- Roumasset, James A. & Smith, Kirk R., 1990. "Exposure trading: An approach to more efficient air pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 18(3), pages 276-291, May.
- Wayne B Gray & Ronald J Shadbegian, 1993.
"Environmental Regulation And Manufacturing Productivity At The Plant Level,"
93-6, Center for Economic Studies, U.S. Census Bureau.
- Wayne B. Gray & Ronald J. Shadbegian, 1993. "Environmental Regulation and Manufacturing Productivity at the Plant Level," NBER Working Papers 4321, National Bureau of Economic Research, Inc.
- J. Vernon Henderson, 1994.
"Externalities and Industrial Development,"
NBER Working Papers
4730, National Bureau of Economic Research, Inc.
- Chamberlain, Gary, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 47(1), pages 225-38, January.
- Scott E. Atkinson & T. H. Tietenberg, 1987. "Economic Implications of Emissions Trading Rules for Local and Regional Pollutants," Canadian Journal of Economics, Canadian Economics Association, vol. 20(2), pages 370-86, May.
- Deily, Mary E. & Gray, Wayne B., 1991.
"Enforcement of pollution regulations in a declining industry,"
Journal of Environmental Economics and Management,
Elsevier, vol. 21(3), pages 260-274, November.
- Mary E. Deily & Wayne B. Gray, 1989. "Enforcement of pollution regulations in a declining industry," Working Paper 8912, Federal Reserve Bank of Cleveland.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.