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The effects of air quality regulations on the location decisions of pollution-intensive manufacturing plants

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Abstract

This research examines the effects of the 1977 Clean Air Act Amendments (CAAA) on the location decisions of pollution-intensive manufacturing plants. We develop a panel data set to analyze plant births of polluting manufacturers over time as a function county-level attainment status of the federal standard for ozone pollution. We find that more stringent county-level environmental regulations impact pollution-intensive capital flows through deterring new plant births. We also find that the impact of stricter regulations varies by pollution-intensity of manufacturers, with results suggesting that federal guidelines have a greater impact on high pollution intensive manufacturers than more moderate polluters.

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Authors and Affiliations

  1. Center for Applied Demography and Survey Research, College of Human Services, Education, and Public Policy, University of Delaware, 290 Graham Hall, Academy Street, Newark, DE, 19716, USA

    Simon Condliffe

  2. Department of Economics, Appalachian State University, Boone, NC, 28608, USA

    O. Ashton Morgan

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  1. Simon Condliffe
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  2. O. Ashton Morgan
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Correspondence to Simon Condliffe.

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Condliffe, S., Morgan, O. The effects of air quality regulations on the location decisions of pollution-intensive manufacturing plants. J Regul Econ 36, 83–93 (2009). https://doi.org/10.1007/s11149-008-9064-1

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  • DOI: https://doi.org/10.1007/s11149-008-9064-1

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