The Case of the Missing Pollution Haven Hypothesis
One particularly vexing puzzle for economists and policymakers over the past several decades concerns the empirical significance of the theoretically predicted pollution haven hypothesis. While neoclassical theory and conventional wisdom both surmise that local economies will suffer deleterious effects from stricter environmental regulations, empirical studies have largely failed to validate such claims. This study utilizes the method of matching to show that the impact of stricter regulation is heterogeneous spatially, varying systematically based on location-specific attributes. Previous studies that assume a homogenous response may therefore inadvertently mask the overall impact of more stringent regulations by pooling unaffected and affected regions. Copyright Kluwer Academic Publishers 2004
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Volume (Year): 26 (2004)
Issue (Month): 3 (08)
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- John A. List & W. Warren McHone & Daniel L. Millimet, 2003.
"Effects of air quality regulation on the destination choice of relocating plants,"
Oxford Economic Papers,
Oxford University Press, vol. 55(4), pages 657-678, October.
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- Randy Becker & Vernon Henderson, 2000. "Effects of Air Quality Regulations on Polluting Industries," Journal of Political Economy, University of Chicago Press, vol. 108(2), pages 379-421, April.
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- Stengos, T. & Millimet, D.L. & List, J.A., 2002. "The Environmental Kuznets Curve: Real Progress or Misspecified Models?," Working Papers 2002-13, University of Guelph, Department of Economics and Finance.
- John List & Daniel Millimet & Thanasis Stengos, 2003. "The Environmental Kuznets Curve: Real Progress or Misspecified Models?," Natural Field Experiments 00500, The Field Experiments Website.
- 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.
- Per Fredriksson & John List & Warren McHone & Daniel Millimet, 2003. "Effects of Environmental Regulations on Manufacturing Plant Births: Evidence from a Propensity Score Matching Estimator," Natural Field Experiments 00501, The Field Experiments Website.
- Tim Jeppesen & John A. List & Henk Folmer, 2002. "Environmental Regulations and New Plant Location Decisions: Evidence from a Meta-Analysis," Journal of Regional Science, Wiley Blackwell, vol. 42(1), pages 19-49.
- Henk Folmer & Tim Jeppesen & John List, 2002. "Environmental Regulations and New Plant Location Decisions: Evidence from a Meta-Analysis," Natural Field Experiments 00511, The Field Experiments Website.
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