The Effect of Environmental Regulation on Plant-Level Product Mix: A Study of EPA's Cluster Rule

2013 ◽  
Author(s):  
Aaron A. Elrod ◽  
Arun S. Malik
Keyword(s):  
Environmental Regulation ◽  
Product Mix ◽  
Cluster Rule ◽  
Plant Level

Environmental Regulations and the Clean-Up of Manufacturing: Plant-Level Evidence

2020 ◽  
pp. 1-45
Author(s):  
Nouri Najjar ◽  
Jevan Cherniwchan
Keyword(s):  
Air Quality ◽  
Environmental Regulation ◽  
Equilibrium Model ◽  
Emission Intensity ◽  
Quality Standards ◽  
Manufacturing Plant ◽  
Entry And Exit ◽  
Air Quality Standards ◽  
Quasi Experimental ◽  
Plant Level

For much of the industrialized world, pollution from manufacturing has been falling despite increased output. We examine how air quality standards—a common environmental regulation—have contributed to this "clean-up" of manufacturing. We develop a general equilibrium model to show how air quality standards can lead to a clean-up by causing: (i) reductions in plant emission intensity, (ii) relative changes in plant output, and (iii) plant entry and exit. We provide quasi-experimental evidence from Canada to highlight the magnitude of these responses. Our results suggest that air quality standards explain just under 40% of the clean-up of manufacturing.

Multinationals and environmental regulation: are foreign firms harmful?

2012 ◽  
Vol 17 (2) ◽  
pp. 163-186 ◽  
Author(s):  
Evangelina Dardati ◽  
Meryem Saygili
Keyword(s):  
Environmental Regulation ◽  
Multinational Firms ◽  
Monopolistic Competition ◽  
Environmental Regulations ◽  
Heterogeneous Firms ◽  
Foreign Firms ◽  
Domestic Firms ◽  
Level Data ◽  
Multinational Production ◽  
Plant Level

AbstractThe rise of globalization has directed the attention of economists to the effect of trade and multinational production on the environment. We explore whether multinational firms, frequently the target of environmentalists, are harmful for a host country's environment. We introduce environmental regulation in a two-country model of heterogeneous firms with monopolistic competition. Using plant-level data from Chile, we test the model implications. We find that foreign firms are cleaner than domestic plants even after controlling for productivity that is likely to be negatively correlated with emissions. We also show that increasing the stringency of environmental regulations in a previously unregulated market affects the domestic firms more than the multinationals.

Environmental Regulation and Labor Reallocation: Evidence from the Clean Air Act

2011 ◽  
Vol 101 (3) ◽  
pp. 442-447 ◽  
Author(s):  
W. Reed Walker
Keyword(s):  
Environmental Regulation ◽  
Employment Growth ◽  
Clean Air Act ◽  
County Level ◽  
Strong Connection ◽  
Labor Reallocation ◽  
Regulatory Status ◽  
Clean Air ◽  
Plant Level ◽  
The Impact

This paper uses newly available data on plant level regulatory status linked to the Census Longitudinal Business Database to measure the impact of changes in county level environmental regulations on plant and sector employment levels. Estimates from a variety of specifications suggest a strong connection between changes in environmental regulatory stringency and both employment growth and levels in the affected sectors. The preferred estimates suggest that changes in county level regulatory status due to the 1990 Clean Air Act Amendments reduced the size of the regulated sector by as much as 15 percent in the 10 years following the changes.

scholarly journals Estimating the Hidden Costs of Environmental Regulation

2001 ◽  
Vol 76 (2) ◽  
pp. 171-198 ◽  
Author(s):  
Satish Joshi ◽  
Ranjani Krishnan ◽  
Lester Lave
Keyword(s):  
Environmental Regulation ◽  
Regulatory Compliance ◽  
Environmental Costs ◽  
Structured Interviews ◽  
Accounting Systems ◽  
Steel Mills ◽  
Level Data ◽  
Plant Level ◽  
Corporate Level

This paper examines the extent to which accounting systems separately identify all the costs of environmental regulation. We estimate the relation between the “visible” costs of regulatory compliance (costs that firms' accounting systems correctly classify as “environmental”) and “hidden” environmental costs embedded in other accounts. We use plant-level data from 55 steel mills to estimate hidden costs, and we follow up with structured interviews of corporate-level managers and plant-level accountants. Empirical results show that a $1 increase in the visible cost of environmental regulation is associated with an increase in total cost (at the margin) of $10–$11, of which $9–$10 are hidden in other accounts. The findings suggest that inappropriate identification and accumulation of the costs of environmental compliance are likely to distort costs in firms subject to environmental regulation.

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