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Environmental Regulation And Industry Employment: A Reassessment

  • Anna Belova
  • Wayne B. Gray
  • Joshua Linn
  • Richard D. Morgenstern

This paper examines the impact of environmental regulation on industry employment, using a structural model based on data from the Census Bureau’s Pollution Abatement Costs and Expenditures Survey. This model was developed in an earlier paper (Morgenstern, Pizer, and Shih (2002) - MPS). We extend MPS by examining additional industries and additional years. We find widely varying estimates across industries, including many implausibly large positive employment effects. We explore several possible explanations for these results, without reaching a satisfactory conclusion. Our results call into question the frequent use of the average impacts estimated by MPS as a basis for calculating the quantitative impacts of new environmental regulations on employment.

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File URL: ftp://ftp2.census.gov/ces/wp/2013/CES-WP-13-36.pdf
File Function: First version, 2013
Download Restriction: no

Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 13-36.

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Length: 38 pages
Date of creation: Jul 2013
Date of revision:
Handle: RePEc:cen:wpaper:13-36
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  1. Michael Greenstone & John A. List & Chad Syverson, 2012. "The Effects of Environmental Regulation on the Competitiveness of U.S. Manufacturing," NBER Working Papers 18392, National Bureau of Economic Research, Inc.
  2. Randy A. Becker & Ronald J. Shadbegian, 2004. "A Change of PACE: Comparing the 1994 and 1999 Pollution Abatement Costs and Expenditures Surveys," NCEE Working Paper Series 200408, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Jul 2004.
  3. Pizer, William & Morgenstern, Richard & Shih, Jhih-Shyang, 1998. "The Cost of Environmental Protection," Discussion Papers dp-98-36, Resources For the Future.
  4. Eli Berman & Linda T. M. Bui, 2001. "Environmental Regulation And Productivity: Evidence From Oil Refineries," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 498-510, August.
  5. Randy A. Becker & Ronald J. Shadbegian, 2007. "Issues and Challenges in Measuring Environmental Expenditures by U.S. Manufacturing: The Redevelopment of the PACE Survey," NCEE Working Paper Series 200708, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Jul 2007.
  6. Wolfgang Keller & Arik Levinson, 2002. "Pollution Abatement Costs and Foreign Direct Investment Inflows to U.S. States," The Review of Economics and Statistics, MIT Press, vol. 84(4), pages 691-703, November.
  7. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932, August.
  8. Rema Hanna, 2010. "US Environmental Regulation and FDI: Evidence from a Panel of US-Based Multinational Firms," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 158-89, July.
  9. Ron S Jarmin & Javier Miranda, 2002. "The Longitudinal Business Database," Working Papers 02-17, Center for Economic Studies, U.S. Census Bureau.
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