EconPapers    
Economics at your fingertips  
 

The Effects of Environmental Regulation on the Competitiveness of U.S. Manufacturing

Michael Greenstone (), John List () and Chad Syverson

Natural Field Experiments from The Field Experiments Website

Abstract: The economic costs of environmental regulations have been widely debated since the U.S. began to restrict pollution emissions more than four decades ago. Using detailed production data from nearly 1.2 million plant observations drawn from the 1972-1993 Annual Survey of Manufactures, we estimate the effects of air quality regulations on manufacturing plants' total factor productivity (TFP) levels. We find that among surviving polluting plants, stricter air quality regulations are associated with a roughly 2.6 percent decline in TFP. The regulations governing ozone have particularly large negative effects on productivity, though effects are also evident among particulates and sulfur dioxide emitters. Carbon monoxide regulations, on the other hand, appear to increase measured TFP, especially among refineries. The application of corrections for the confounding of price increases and output declines and sample selection on survival produce a 4.8 percent estimated decline in TFP for polluting plants in regulated areas. This corresponds to an annual economic cost from the regulation of manufacturing plants of roughly $21 billion, about 8.8 percent of manufacturing sector profits in this period.

Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25) Track citations by RSS feed

Downloads: (external link)
http://s3.amazonaws.com/fieldexperiments-papers2/papers/00590.pdf

Related works:
Working Paper: The Effects of Environmental Regulation on the Competitiveness of U.S. Manufacturing (2012) Downloads
Working Paper: The Effects of Environmental Regulation on the Competiveness of U.S. Manufacturing (2011) Downloads
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: https://EconPapers.repec.org/RePEc:feb:natura:00590

Access Statistics for this paper

More papers in Natural Field Experiments from The Field Experiments Website
Bibliographic data for series maintained by Joe Seidel ().

 
Page updated 2020-01-16
Handle: RePEc:feb:natura:00590