NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Manufacturing Plant Location: Does State Pollution Regulation Matter?

Wayne B. Gray

NBER Working Paper No. 5880
Issued in January 1997
NBER Program(s):   PR   PE   EEE

This paper tests whether differences across states in pollution regulation affect the location of manufacturing activity in the U.S. Plant-level data from the Census Bureau's Longitudinal Research Database is used to identify new plant births in each state over the 1963-1987 period. This is combined with several measures of state regulatory intensity, including business pollution abatement spending, regulatory enforcement activity, congressional pro-environment voting, and an index of state environmental laws. A significant connection is found: states with more stringent environmental regulation have fewer new manufacturing plants. These results persist across a variety of econometric specifications, and the strongest regulatory coefficients are similar in magnitude to those on other factors expected to influence location, such as unionization rates. However, a subsample of high-pollution industries, which might have been expected to show much larger impacts, gets similar coefficients. This raises the possibility that differences between states other than environmental regulation might be influencing the results.

download in pdf format
   (1142 K)

email paper

This paper is available as PDF (1142 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w5880

Users who downloaded this paper also downloaded these:
Gray and Shadbegian w4994 Pollution Abatement Costs, Regulation, and Plant-Level Productivity
Greenstone w8484 The Impacts of Environmental Regulations on Industrial Activity: Evidence from the 1970 & 1977 Clean Air Act Amendments and the Census of Manufactures
Gray and Shadbegian w8705 When Do Firms Shift Production Across States to Avoid Environmental Regulation?
Levinson An Industry-Adjusted Index of State Environmental Compliance Costs
Gray and Shadbegian w4321 Environmental Regulation and Manufacturing Productivity at the Plant Level
 
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