Environmental Inspection Proclivity and State Manufacturing Growth: The US Experience from the 1990s

Christopher S. Decker and John Maxwell
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Christopher S. Decker: Department of Economics and Real Estate, College of Business Administration, University of Nebraska at Omaha

No 2010-02, Working Papers from Indiana University, Kelley School of Business, Department of Business Economics and Public Policy

Abstract: 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.

Keywords: Monitoring and Enforcement; Environmental Regulations; Business Formation Growth (search for similar items in EconPapers)
JEL-codes: K32 Q28 R58 (search for similar items in EconPapers)
Date: 2010-01
New Economics Papers: this item is included in nep-env, nep-law, nep-reg and nep-res
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http://kelley.iu.edu/riharbau/RePEc/iuk/wpaper/bepp2010-02-decker-maxwell.pdf (application/pdf)

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Journal Article: Environmental inspection proclivity and state manufacturing growth: the US Experience from the 1990s (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:iuk:wpaper:2010-02

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