NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

How Do Energy Prices, and Labor and Environmental Regulations Affect Local Manufacturing Employment Dynamics? A Regression Discontinuity Approach

Matthew E. Kahn, Erin T. Mansur

NBER Working Paper No. 16538
Issued in November 2010
NBER Program(s):   EEE   IO

Manufacturing industries differ with respect to their energy intensity, labor-to-capital ratio and their pollution intensity. Across the United States, there is significant variation in electricity prices and labor and environmental regulation. This paper uses a regression discontinuity approach to examine whether the basic logic of comparative advantage can explain the geographical clustering of U.S. manufacturing. Using a unified empirical framework, we document that energy-intensive industries concentrate in low electricity price counties, labor-intensive industries avoid pro-union counties, and pollution-intensive industries locate in counties featuring relatively lax Clean Air Act regulation. We use our estimates to predict the likely jobs impacts of regional carbon mitigation efforts.

download in pdf format
   (488 K)

email paper

This paper is available as PDF (488 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w16538

Published: Do Local Energy Prices and Regulation Affect the Geographic Concentration of Employment? (Joint with Erin Mansur), Journal of Public Economics Volume 101, May 2013, Pages 105-114

Users who downloaded this paper also downloaded these:
Greenstone, List, and Syverson w18392 The Effects of Environmental Regulation on the Competitiveness of U.S. Manufacturing
Reiss and White w9986 Demand and Pricing in Electricity Markets: Evidence from San Diego During California's Energy Crisis
Greenstone w8484 The Impacts of Environmental Regulations on Industrial Activity: Evidence from the 1970 & 1977 Clean Air Act Amendments and the Census of Manufactures
Kellogg w16541 The Effect of Uncertainty on Investment: Evidence from Texas Oil Drilling
Deschenes w16111 Climate Policy and Labor Markets
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us