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Intrafirm Leakage

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  • Felix Samy Soliman

Abstract

The environmental regulations US firms are exposed to are often place-based, incentivizing firms to move to less regulated counties or states. Consistent with this argument, multiplant firms partially regulated under the ozone regulations of the US Clean Air Act offset regulation-induced reductions among regulated plants with spillovers to unregulated plants and by moving plants out of regulated areas. Taken together, these leakage effects fully offset emissions reductions at regulated plants. Effects are strongest among highly productive firms and those operating in tradable industries.

Suggested Citation

  • Felix Samy Soliman, 2020. "Intrafirm Leakage," CESifo Working Paper Series 8619, CESifo.
    • Handle: RePEc:ces:ceswps:_8619
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp8619.pdf
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    References listed on IDEAS

    as
    1. Arik Levinson, 2009. "Technology, International Trade, and Pollution from US Manufacturing," American Economic Review, American Economic Association, vol. 99(5), pages 2177-2192, December.
    2. Alastair C. Lewis & Nicola Carslaw & Philip J. Marriott & Russel M. Kinghorn & Paul Morrison & Andrew L. Lee & Keith D. Bartle & Michael J. Pilling, 2000. "A larger pool of ozone-forming carbon compounds in urban atmospheres," Nature, Nature, vol. 405(6788), pages 778-781, June.
    3. Bulow, Jeremy I & Geanakoplos, John D & Klemperer, Paul D, 1985. "Multimarket Oligopoly: Strategic Substitutes and Complements," Journal of Political Economy, University of Chicago Press, vol. 93(3), pages 488-511, June.
    4. Cherniwchan, Jevan, 2017. "Trade liberalization and the environment: Evidence from NAFTA and U.S. manufacturing," Journal of International Economics, Elsevier, vol. 105(C), pages 130-149.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    emissions leakage; aggregate effects of regulation; environmental economics; Clean Air Act; industrial emissions;
    All these keywords.

    JEL classification:

    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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