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

Ash Morgan () and Simon Condliffe

No 09-12, Working Papers from Department of Economics, Appalachian State University

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

JEL-codes: R38 Q28 Q53 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-env, nep-geo, nep-reg and nep-ure
Date: Written
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