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Spatial Heterogeneity in Environmental Regulation Enforcement and the Firm Location Decision among U.S. Counties

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  • O. Ashton Morgan
  • Simon Condliffe

Abstract

We estimate a negative binomial model with fixed effects to examine the impact of spatial differences in environmental regulation on manufacturing capital flows. Using a newly available data set, we find that stricter air quality standards deter births of polluting plants, suggesting heterogeneity in regulatory standards may create a temporal browning process. We also find that spatial differences in environmental regulation do not play a role in the location decision of non-pollution intensive plants. Key Words: Environmental regulation, firm location, air pollution

Suggested Citation

  • O. Ashton Morgan & Simon Condliffe, 2009. "Spatial Heterogeneity in Environmental Regulation Enforcement and the Firm Location Decision among U.S. Counties," Working Papers 09-12, Department of Economics, Appalachian State University.
    • Handle: RePEc:apl:wpaper:09-12
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    References listed on IDEAS

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    Cited by:

    1. Glenn Sheriff & Ann E. Ferris & Ronald J. Shadbegian, 2015. "How Did Air Quality Standards Affect Employment at U.S. Power Plants? The Importance of Stringency, Geography, and Timing," NCEE Working Paper Series 201501, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised May 2015.
    2. Jiajia Zheng & Pengfei Sheng, 2017. "The Impact of Foreign Direct Investment (FDI) on the Environment: Market Perspectives and Evidence from China," Economies, MDPI, vol. 5(1), pages 1-15, March.
    3. Yinhao Wu & Changhong Miao & Jianming Miao & Yan Zhang, 2020. "How Does Environmental Regulation Affect the Location of New Polluting Firms? Exploring the Agglomeration Threshold of Effective Environmental Regulation," IJERPH, MDPI, vol. 17(4), pages 1-16, February.
    4. Cui, Jingbo & Moschini, GianCarlo, 2020. "Firm internal network, environmental regulation, and plant death," Journal of Environmental Economics and Management, Elsevier, vol. 101(C).
    5. Yingming Zhu & Nian Wang & Ronghui Xie, 2022. "Exploring the Role of Heterogeneous Environmental Regulations in Industrial Agglomeration: A Fresh Evidence from China," Sustainability, MDPI, vol. 14(17), pages 1-17, August.

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    More about this item

    Keywords

    environmental regulation; firm location; air pollution;
    All these keywords.

    JEL classification:

    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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