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Do Environmental Regulations Disproportionately Affect Small Businesses? Evidence from the Pollution Abatement Costs and Expenditures Survey

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  • Randy A. Becker
  • Ronald J. Shadbegian
  • Carl Pasurka

Abstract

This paper examines whether the impact of environmental regulations differs by the size of the business. We consider the net effect of statutory, enforcement, and compliance asymmetries by estimating the relationship between plant size and pollution abatement expenditures, using establishment-level data on U.S. manufacturers from the Census Bureau’s Pollution Abatement Costs and Expenditures (PACE) survey and from its Annual Survey of Manufactures and Census of Manufactures. We model establishments’ pollution abatement operating costs (PAOC) per unit of economic activity as a function of establishment size, industry, state, and year. Our results show that PAOC intensity increases with establishment and firm size. Updated Version posted 8-21-2013

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Bibliographic Info

Paper provided by National Center for Environmental Economics, U.S. Environmental Protection Agency in its series NCEE Working Paper Series with number 201206.

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Length: 39 pages
Date of creation: Aug 2013
Date of revision: Aug 2013
Handle: RePEc:nev:wpaper:wp201206

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Keywords: Environmental Regulation; costs; Business size; U. S.manufacturing;

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