NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Impact of Pollution Abatement Investment on Productivity Change: AnEmpirical Comparison of the U.S., Germany, and Canada

Klaus Conrad, Catherine J. Morrison

NBER Working Paper No. 1763
Issued in October 1985
NBER Program(s):   PR

It has often been asserted that imposition of environmental regulations in the 1970's may be a partial explanation for the productivity growth slowdowns experienced by most industrialized countries during that decade.The contention is that expenses incurred to satisfy these regulations, such as investment in pollution abatement capital, is unproductive in terms of measured output. Thus conventional productivity measures will be biased downward when such regulations are imposed. In this paper we construct a model which explicitly recognizes the difference between pollution abatement capital and "productive" capital and then use this framework to devleop an adjustment to nonparametric measures of productivity growth, purging them of the bias resulting from regulation. We measure the bias for the manufacturing sectors of three countries, the U.S., Canada and Germany, and thereby assess the impact of increased pollution abatement capital regulation on productivity growth. Our principal finding is that the bias, which depends on relative rates of growth of output and pollution abatement capital investment, is modest.

download in pdf format
   (404 K)

download in djvu format
   (267 K)

email paper

This paper is available as PDF (404 K) or DjVu (267 K) (Download viewer) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w1763

Published: Conrad and Morrison, from Southern Economic Journal, January 1989.

Users who downloaded this paper also downloaded these:
Graff Zivin and Neidell w17004 The Impact of Pollution on Worker Productivity
Gray and Shadbegian w4994 Pollution Abatement Costs, Regulation, and Plant-Level Productivity
Gray and Shadbegian w4321 Environmental Regulation and Manufacturing Productivity at the Plant Level
Williams w8049 Environmental Tax Interactions When Pollution Affects Health or Productivity
 
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