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Environmental Products Manufacturing: A Look inside the Green Industry


  • Becker Randy A

    () (U.S. Bureau of the Census)

  • Shadbegian Ronald J

    () (U.S. Environmental Protection Agency)


The green industry is often noted in discussions of the costs and benefits of environmental policy, and it has been characterized as a unique industry with substantial potential for employment growth, well-paying green jobs, and export opportunities. In this paper, we examine the characteristics and recent economic performance of the green industry, using establishment-level data on environmental products manufacturers (EPMs) from the 1995 Survey of Environmental Products and Services, together with data from the Annual Survey of Manufactures and the Census of Manufactures. Results suggest that there are some differences between EPMs and their non-EPM counterparts in the same industry, in terms of employment, employee compensation, exports, and productivity. However, we do not find any evidence that EPMs performed any better than otherwise similar plants, in terms of survival, employment growth, wage growth, and export growth. We suggest that the green industry (as defined here) may not be as exceptional as is sometimes maintained.

Suggested Citation

  • Becker Randy A & Shadbegian Ronald J, 2009. "Environmental Products Manufacturing: A Look inside the Green Industry," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-25, March.
  • Handle: RePEc:bpj:bejeap:v:9:y:2009:i:1:n:7

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    References listed on IDEAS

    1. Hazilla, Michael & Kopp, Raymond J, 1990. "Social Cost of Environmental Quality Regulations: A General Equilibrium Analysis," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 853-873, August.
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    3. Alberto Abadie & David Drukker & Jane Leber Herr & Guido W. Imbens, 2004. "Implementing matching estimators for average treatment effects in Stata," Stata Journal, StataCorp LP, vol. 4(3), pages 290-311, September.
    4. Kahn, Matthew E., 1997. "Particulate pollution trends in the United States," Regional Science and Urban Economics, Elsevier, vol. 27(1), pages 87-107, February.
    5. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-475, June.
    6. Alberto Abadie & Guido W. Imbens, 2006. "Large Sample Properties of Matching Estimators for Average Treatment Effects," Econometrica, Econometric Society, vol. 74(1), pages 235-267, January.
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    Cited by:

    1. Francesco Vona & Giovanni Marin & Davide Consoli & David Popp, 2015. "Green Skills," NBER Working Papers 21116, National Bureau of Economic Research, Inc.
    2. Elliott, Robert J.R. & Lindley, Joanne K., 2017. "Environmental Jobs and Growth in the United States," Ecological Economics, Elsevier, vol. 132(C), pages 232-244.
    3. Francesco Vona & G. Marin & D. Consoli, 2016. "Measures, Drivers and Effects of Green Employment : evidence from US local Labor Markets, 2006-2014," Documents de Travail de l'OFCE 2016-22, Observatoire Francais des Conjonctures Economiques (OFCE).
    4. Robert J R Elliott & Joanne K Lindley, 2014. "Green Jobs and Growth in the United States: Green Shoots or False Dawn?," Discussion Papers 14-09, Department of Economics, University of Birmingham.
    5. Valeria Costantini & Francesco Crespi & Elena Paglialunga, 2017. "The Employment Impact Of Private And Public Actions For Energy Efficiency: Evidence From European Industries," Departmental Working Papers of Economics - University 'Roma Tre' 0227, Department of Economics - University Roma Tre.
    6. Consoli, Davide & Marin, Giovanni & Marzucchi, Alberto & Vona, Francesco, 2016. "Do green jobs differ from non-green jobs in terms of skills and human capital?," Research Policy, Elsevier, vol. 45(5), pages 1046-1060.
    7. Sam Fankhauser & Alex Bowen & Raphael Calel & Antoine Dechezlepr´┐Żtre & David Grover & James Rydge & Misato Sato, 2012. "Who will win the green race? In search of environmental competitiveness and innovation," GRI Working Papers 94, Grantham Research Institute on Climate Change and the Environment.
    8. Masini, Andrea & Menichetti, Emanuela, 2013. "Investment decisions in the renewable energy sector: An analysis of non-financial drivers," Technological Forecasting and Social Change, Elsevier, vol. 80(3), pages 510-524.

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