Environmental Inspection Proclivity and State Manufacturing Growth: The US Experience from the 1990s
In this paper we construct a ranking of states based on their proclivity to inspect facilities for environmental compliance. Our measure utilizes state-level inspections data supplied by the US Environmental Protection Agency. After developing our ranking, we use it to predict state-level growth in manufacturing establishments. In doing so, we find support for the notion that enforcement intensity adversely impacts such growth. Our results offer insight into why existing studies that examine the impact of environmental regulation on location and growth produce inconsistent results.
|Date of creation:||Jan 2010|
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NBER Working Papers
5880, National Bureau of Economic Research, Inc.
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- List, John A. & Co, Catherine Y., 2000.
"The Effects of Environmental Regulations on Foreign Direct Investment,"
Journal of Environmental Economics and Management,
Elsevier, vol. 40(1), pages 1-20, July.
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- Harrington, Winston, 1988. "Enforcement leverage when penalties are restricted," Journal of Public Economics, Elsevier, vol. 37(1), pages 29-53, October.
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