The effect of county non-attainment status on the product mix of plants in the pulp, paper, and paperboard industries

Aaron A. Elrod and Arun S. Malik

Journal of Environmental Economics and Policy, 2019, vol. 8, issue 3, 283-300

Abstract: This paper examines the effect of ground-level ozone county non-attainment status on the product-mix decisions of plants in the pulp, paper, and paperboard industries. Plants located in non-attainment counties face more stringent standards than plants located in attainment counties. These standards may plausibly induce firms to reduce output of pollution-intensive products (products that lead to ozone-forming emissions of volatile organic compounds) or drop some of these products entirely. Using a difference-in-differences strategy, we find evidence that plants in non-attainment counties (treatment group) are more likely to drop pollution-intensive products relative to non-pollution-intensive products compared to plants in attainment counties (control group).

Date: 2019
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DOI: 10.1080/21606544.2019.1569561

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