The Missing Pollution Haven Effect
This paper examines the effect of recent increases inhazardous waste disposal taxes on employment growth inindustries that generate hazardous waste. Mostexisting literature has found that interjurisdictionaldifferences in environmental stringency havenegligible measurable economic consequences. Commonexplanations for this lack of effect include claimsthat (1) measures of environmental stringency arepoorly quantified, (2) compliance costs are modest,(3) variation in compliance costs among jurisdictionsis small, and (4) cross-section data are insufficientto explore the consequences of increasingly stringentstandards. This paper addresses these four concernsby quantifying hazardous waste disposal taxes,demonstrating that they are large and varied acrossjurisdictions in the United States, and showing thatthey have had a significant effect on hazardous wasteshipping among states. The paper then uses a panel ofstate and county-level data to show that despite thesefindings, state hazardous waste disposal taxes do notimpose large employment losses on industries thatgenerate waste. Copyright Kluwer Academic Publishers 2000
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Volume (Year): 15 (2000)
Issue (Month): 4 (April)
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