Technology, International Trade, and Pollution from U.S. Manufacturing
AbstractTotal pollution emitted by U.S. manufacturers declined over the past 30 years by about 60 percent, even though real manufacturing output increased 70 percent. This improvement must result from a combination of two trends: (1) changes in production or abatement processes ("technology"); or (2) changes in the mix of goods manufactured in the United States, which itself may result from increased net imports of pollution-intensive goods ("international trade"). I first show that most of the decline in pollution from U.S. manufacturing has been the result of changing technology, rather than changes in the mix of goods produced, although the pace of that technology change has slowed over time. Second, I present evidence that increases in net imports of pollution-intensive goods are too small to explain more than about half of the pollution reductions from the changing mix of goods produced in the United States. Together, these two findings demonstrate that shifting polluting industries overseas has played at most a minor role in the cleanup of U.S. manufacturing.
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Bibliographic InfoPaper provided by National Center for Environmental Economics, U.S. Environmental Protection Agency in its series NCEE Working Paper Series with number 200802.
Length: 40 pages
Date of creation: Feb 2008
Date of revision: Feb 2008
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pollution havens; trade and environment; pollution intensity;
Other versions of this item:
- Arik Levinson, 2009. "Technology, International Trade, and Pollution from US Manufacturing," American Economic Review, American Economic Association, vol. 99(5), pages 2177-92, December.
- Arik Levinson, 2007. "Technology, International Trade, and Pollution from U.S. Manufacturing," Working Papers gueconwpa~07-07-05, Georgetown University, Department of Economics.
- Levinson, Arik, 2007. "Technology, International Trade, and Pollution from U.S. Manufacturing," Discussion Papers dp-07-40, Resources For the Future.
- Arik Levinson, 2007. "Technology, International Trade, and Pollution from U.S. Manufacturing," NBER Working Papers 13616, National Bureau of Economic Research, Inc.
- F18 - International Economics - - Trade - - - Trade and Environment
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Costs; Distributional Effects; Employment Effects
- Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
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