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Environmental Regulations and New Plant Location Decisions: Evidence from a Meta-Analysis

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  • Henk Folmer
  • Tim Jeppesen
  • John List

Abstract

Stricter environmental regulations are often opposed on the grounds that they will alter equilibrium capital flows. Empirical evidence in this area remains largely unresolved, mainly due to the quite disparate results found in the literature. This paper takes a positive look at the relationship between new manufacturing plant location decisions and environmental regulations by examining data from 11 studies that provide more than 365 observations. One major result from our meta-analysis is that methodological considerations play a critical role in shaping the body of received estimates. Our empirical estimates also lend insights into future research that is necessary before any robust conclusions can be made regarding the effects of environmental regulations on capital flows.

Suggested Citation

  • 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.
    • Handle: RePEc:feb:natura:00511
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    References listed on IDEAS

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    2. Virginia D. McConnell & Robert M. Schwab, 1990. "The Impact of Environmental Regulation on Industry Location Decisions: The Motor Vehicle Industry," Land Economics, University of Wisconsin Press, vol. 66(1), pages 67-81.
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    6. Espey, Molly, 1998. "Gasoline demand revisited: an international meta-analysis of elasticities," Energy Economics, Elsevier, vol. 20(3), pages 273-295, June.
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    9. Henk Folmer & H. Landis Gabel & Shelby Gerking & Adam Rose (ed.), 2001. "Frontiers of Environmental Economics," Books, Edward Elgar Publishing, number 1929.
    10. Michael Wasylenko, 1997. "Taxation and economic development: the state of the economic literature," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 37-52.
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