Does Competition Prevent Industrial Pollution? Evidence from a Panel Threshold Model

Michael Polemis () and Thanasis Stengos

Working Paper series from Rimini Centre for Economic Analysis

Abstract: The scope of this paper is to assess the impact of competition on industrial toxic pollution by using for the first time, a panel threshold model which allows evaluating the main drivers of toxic releases under two different market regimes. The empirical analysis is based on a unique micro level panel data set including thousands of industrial facilities dispersed among the US states over the period 1987-2012. We show that this relationship is statistically significant above and below the threshold, even after accounting for alternative specifications of market concentration. Finally, contrary to previous studies, we unmask a robust inverted "V-shaped" relationship between market concentration and industrial pollution, which calls for further future research on the implementation of policies targeted at the abatement of environmental degradation.

Keywords: Competition; Concentration; Threshold; Non-linearities; Inverted "V-shaped" (search for similar items in EconPapers)
JEL-codes: C23 C24 L10 L60 Q52 (search for similar items in EconPapers)
Date: 2017-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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http://www.rcea.org/RePEc/pdf/wp17-07.pdf

Related works:
Journal Article: Does competition prevent industrial pollution? Evidence from a panel threshold model (2019)
Working Paper: Does Competition Prevent Industrial Pollution? Evidence from a Panel Threshold Model (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:rim:rimwps:17-07

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