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Environmental Regulation and Industry Employment: A Reassessment

38 Pages Posted: 7 Aug 2013  

Anna Belova

Abt Associates, Inc.

Wayne B. Gray

Clark University - Department of Economics; National Bureau of Economic Research (NBER)

Joshua Linn

Resources for the Future

Richard D. Morgenstern

Resources for the Future

Date Written: July 1, 2013

Abstract

This paper examines the impact of environmental regulation on industry employment, using a structural model based on data from the Census Bureau’s Pollution Abatement Costs and Expenditures Survey. This model was developed in an earlier paper (Morgenstern, Pizer, and Shih (2002) - MPS). We extend MPS by examining additional industries and additional years. We find widely varying estimates across industries, including many implausibly large positive employment effects. We explore several possible explanations for these results, without reaching a satisfactory conclusion. Our results call into question the frequent use of the average impacts estimated by MPS as a basis for calculating the quantitative impacts of new environmental regulations on employment.

Suggested Citation

Belova, Anna and Gray, Wayne B. and Linn, Joshua and Morgenstern, Richard D., Environmental Regulation and Industry Employment: A Reassessment (July 1, 2013). US Census Bureau Center for Economic Studies Paper No. CES-WP- 13-36. Available at SSRN: https://ssrn.com/abstract=2306753 or http://dx.doi.org/10.2139/ssrn.2306753

Anna Belova (Contact Author)

Abt Associates, Inc. ( email )

4550 Montgomery Ave #800N,
Bethesda, MD 20714
United States

Wayne B. Gray

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Clark University - Department of Economics ( email )

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Worcester, MA 01610
United States
708-793-7693 (Phone)
708-793-8849 (Fax)

Joshua Linn

Resources for the Future ( email )

1616 P Street, NW
Washington, DC 20036
United States

Richard Morgenstern

Resources for the Future ( email )

1616 P Street, NW
Washington, DC 20036
United States

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