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An Industry-Adjusted Index of State Environmental Compliance Costs

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Arik Levinson

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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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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 7297.

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Date of creation: Aug 1999
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Handle: RePEc:nbr:nberwo:7297

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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?," Working Papers 97-8, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
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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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(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. Arik Levinson, . "Environmental Regulatory Competition: A Status Report and Some New Evident," Working Papers gueconwpa~02-02-07, Georgetown University, Department of Economics. [Downloadable!]
  3. 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!]
    Other versions:
  4. Hilary Sigman, 2006. "Environmental Liability and Redevelopment of Old Industrial Land," Departmental Working Papers 200609, Rutgers University, Department of Economics. [Downloadable!]
    Other versions:
  5. 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:
  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. repec:bep:eapcon:v:3:y:2004:i:2:p:1231-1231 is not listed on IDEAS
  8. 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:
  9. repec:bep:eaptop:v:7:y:2007:i:1:p:1668-1668 is not listed on IDEAS
  10. 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!]
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