Title

Effects of environmental regulations on manufacturing plant births: Evidence from a propensity score matching estimator

Authors

Authors

J. A. List; D. L. Millimet; P. G. Fredriksson;W. W. McHone

Comments

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Abbreviated Journal Title

Rev. Econ. Stat.

Keywords

AIR-QUALITY REGULATIONS; COUNT DATA MODELS; CAUSAL; BIAS; Economics; Social Sciences, Mathematical Methods

Abstract

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.

Journal Title

Review of Economics and Statistics

Volume

85

Issue/Number

4

Publication Date

1-1-2003

Document Type

Article

Language

English

First Page

944

Last Page

952

WOS Identifier

WOS:000186322400013

ISSN

0034-6535

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