Effects of environmental regulations on manufacturing plant births: Evidence from a propensity score matching estimator
Abbreviated Journal Title
Rev. Econ. Stat.
AIR-QUALITY REGULATIONS; COUNT DATA MODELS; CAUSAL; BIAS; Economics; Social Sciences, Mathematical Methods
This study examines the effects of air quality regulation on economic activity. Anecdotal evidence and some recent empirical studies suggest that an inverse relationship exists between the stringency of environmental regulations and new plant formations. Using a unique county-level data set for New York State from 1980 to 1990, we revisit this conjecture using a seminonparametric method based on propensity score matching. Our empirical estimates suggest that pollution-intensive plants are responding to environmental regulations; more importantly, we find that traditional parametric methods used in previous studies may dramatically understate the impact of more stringent regulations.
Review of Economics and Statistics
"Effects of environmental regulations on manufacturing plant births: Evidence from a propensity score matching estimator" (2003). Faculty Bibliography 2000s. 3898.