Effects of air quality regulation on the destination choice of relocating plants |
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| Authors: | List, John A. McHone, W. Warren Millimet, Daniel L. |
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| Affiliation: | !["*"]("/math/bigstar.gif") Department of Agricultural and Resource Economics, 2200 Symons Hall, University of Maryland, College Park, Maryland 20742, USA; e-mail: jlist{at}arec.umd.edu
!["{dagger}"]("/math/dagger.gif") Department of Economics, University of Central Florida, Orlando, Florida, USA
!["{ddagger}"]("/math/Dagger.gif") Department of Economics, Southern Methodist University, Dallas, Texas, USA |
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| Abstract: | Whether lax environmental regulations are an important attractionfor mobile capital remains one of the most controversial issuesin the area of regulatory federalism. While the extant literaturedoes a nice job of estimating the effects of environmental regulationon the spatial allocation of new plant births, one neglectedarea of research is the effect that environmental regulationhas on plant relocation decisions. This paper uses an annual(198090) county level panel data set to examine the relationshipbetween air quality regulatory stringency and the destinationchoice of relocating plants. We estimate empirical models usingboth parametric and semi-nonparametric specifications. Empiricalresults from both models suggest that air quality regulationsalter significantly the destination choices of relocating plants. |
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