Effects of air quality regulation on the destination choice of relocating plants

    Authors

    J. A. List; W. W. McHone;D. L. Millimet

    Comments

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    Abbreviated Journal Title

    Oxf. Econ. Pap.-New Ser.

    Keywords

    ECONOMETRIC EVALUATION ESTIMATOR; PROPENSITY SCORE; ENVIRONMENTAL-REGULATIONS; ECONOMIC-DEVELOPMENT; CAUSAL; LOCATION; POLICY; STATE; BIAS; Economics

    Abstract

    Whether lax environmental regulations are an important attraction for mobile capital remains one of the most controversial issues in the area of regulatory federalism. While the extant literature does a nice job of estimating the effects of environmental regulation on the spatial allocation of new plant births, one neglected area of research is the effect that environmental regulation has on plant relocation decisions. This paper uses an annual (1980-90) county level panel data set to examine the relationship between air quality regulatory stringency and the destination choice of relocating plants. We estimate empirical models using both parametric and semi-nonparametric specifications. Empirical results from both models suggest that air quality regulations alter significantly the destination choices of relocating plants.

    Journal Title

    Oxford Economic Papers-New Series

    Volume

    55

    Issue/Number

    4

    Publication Date

    1-1-2003

    Document Type

    Article

    Language

    English

    First Page

    657

    Last Page

    678

    WOS Identifier

    WOS:000185963600006

    ISSN

    0030-7653

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