Pollution Abatement Costs and Foreign Direct Investment Inflows to U.S. States: A Nonparametric Reassessment

Daniel J. Henderson () and Daniel L. Millimet ()

No 507, Departmental Working Papers from Southern Methodist University, Department of Economics

Abstract: Keller and Levinson (2002, this Review, 84(4), 691-703) utilize state-level panel data on inflows of foreign direct investment along with an innovative measure of relative pollution abatement costs to assess the impact of environmental stringency on capital flows. Using standard parametric panel data models, the authors find moderate evidence that capital flows are sensitive to abatement costs. Using recently developed nonparametric methods, we assess the robustness of this conclusion. The nonparametric approach reveals that (i) some of the parametric results are not robust, (ii) the impact of relative abatement costs is heterogeneous across states and generally of smaller magnitude than previously suggested.Length: 15 pages

JEL-codes: C14 C33 F21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-env
Date: 2005-10
View list of references View citations in EconPapers

Downloads: (external link)
ftp://ftp1.economics.smu.edu/WorkingPapers/2005/millimet/hm2.pdf (application/pdf)

Related works:
Journal Article: Pollution Abatement Costs and Foreign Direct Investment Inflows to U.S. States: A Nonparametric Reassessment (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:smu:ecowpa:0507

Access Statistics for this paper

More papers in Departmental Working Papers from Southern Methodist University, Department of Economics
Address: Department of Economics, P.O. Box 750496, Southern Methodist University, Dallas, TX 75275-0496
Series data maintained by Bo Chen ().