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Interactions Between Economic Growth and Environmental Quality in U.S. Counties

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  • Angelos Pagoulatos
  • Stephan J. Goetz
  • David L. Debertin
  • Tulin Johannson

Abstract

ABSTRACT Linkages among changes in employment, earnings per worker, and pollution per square mile are estimated for 3,036 U.S. counties for the period 1987 to 1995 using a three‐equation disequilibrium adjustment model. Counties with higher shares of African‐Americans experienced higher earnings growth rates over the period 1987‐1995, as did counties with proportionally more females. Counties in states with higher shares of unionized workers had higher earnings growth rates but generated fewer new jobs. Firm size had a significant and negative effect on earnings growth while higher costs of living were associated with higher earnings growth. Also, metro counties and counties in the Northeastern U.S. experienced higher earnings growth than their non‐metro counterparts and counties in other geographic regions. Statistically, faster job growth was found to accelerate the rate of earnings growth per worker. The authors conclude that counties concerned with job growth should recruit or attempt to spawn the creation of larger firms, recognizing that for some firms such a strategy may come at the cost of more rapid increases in pollution. Counties concerned with increasing the rate of growth in per worker earnings should instead focus on the creation of smaller firms.

Suggested Citation

  • Angelos Pagoulatos & Stephan J. Goetz & David L. Debertin & Tulin Johannson, 2004. "Interactions Between Economic Growth and Environmental Quality in U.S. Counties," Growth and Change, Wiley Blackwell, vol. 35(1), pages 90-108, February.
    • Handle: RePEc:bla:growch:v:35:y:2004:i:1:p:90-108
    DOI: 10.1111/j.0017-4815.2004.00240.x
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    References listed on IDEAS

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    1. John A. List & Daniel L. Millimet & Per G. Fredriksson & W. Warren McHone, 2003. "Effects of Environmental Regulations on Manufacturing Plant Births: Evidence from a Propensity Score Matching Estimator," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 944-952, November.
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    Cited by:

    1. Daniel C. Monchuk & John A. Miranowski & Dermot J. Hayes & Bruce A. Babcock, 2007. "An Analysis of Regional Economic Growth in the U.S. Midwest," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(1), pages 17-39.
    2. Deller, Steven C. & Lledo, Victor, 2007. "Amenities and Rural Appalachia Economic Growth," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(1), pages 1-26, April.
    3. Daniel C. Monchuk & Dermot J. Hayes & John A. Miranowski & Dayton M. Lambert, 2011. "Inference Based On Alternative Bootstrapping Methods In Spatial Models With An Application To County Income Growth In The United States," Journal of Regional Science, Wiley Blackwell, vol. 51(5), pages 880-896, December.
    4. Monschuk, Daniel C. & Miranowski, John A., 2010. "The Impacts of Local Innovation and Innovative Spillovers on Employment and Population Growth in the U.S. Midwest," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 40(1), pages 1-10.
    5. Sumei Zhang & Jean-Michel Guldmann, 2015. "A Regression-constrained Optimization Approach to Estimating Suppressed Information using Time-series Data," International Regional Science Review, , vol. 38(2), pages 119-150, April.
    6. Zhang, Sumei & Guldmann, Jean-Michel, 2009. "Estimating suppressed data in regional economic databases: A goal-programming approach," European Journal of Operational Research, Elsevier, vol. 192(2), pages 521-537, January.
    7. Stephan J. Goetz & Yicheol Han & Jill L. Findeis & Kathryn J. Brasier, 2010. "U.S. Commuting Networks and Economic Growth: Measurement and Implications for Spatial Policy," Growth and Change, Wiley Blackwell, vol. 41(2), pages 276-302, June.
    8. Artz, Georgeanne M. & Orazem, Peter F., 2005. "Reexamining Rural Decline: How Changing Rural Classifications and Short Time Frames Affect Perceived Growth," 2005 Annual meeting, July 24-27, Providence, RI 19408, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. England, Richard W., 2007. "Motor fuel taxation, energy conservation, and economic development: A regional approach," Ecological Economics, Elsevier, vol. 61(2-3), pages 409-416, March.

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