Economics
Plant vintage, technology, and environmental regulation
Document Type
Article
Abstract
We use data on productivity and pollution abatement costs at individual pulp and paper mills to test whether the impact of environmental regulation on productivity differs by plant vintage and technology. Plants with higher pollution abatement costs have significantly lower productivity levels. This relationship differs greatly based on a plant's technology, with productivity at integrated mills being greatly affected by abatement costs, while the impact at non-integrated mills is negligible. Plant vintage does not seem to matter, with older and newer plants showing similar impacts. Reported abatement costs appear to substantially understate the true costs of abatement. Accounting for the impact of technology differences makes some difference in the estimated overall impact of environmental regulation. © 2003 Elsevier Science (USA). All rights reserved.
Publication Title
Journal of Environmental Economics and Management
Publication Date
2003
Volume
46
Issue
3
First Page
384
Last Page
402
ISSN
0095-0696
DOI
10.1016/S0095-0696(03)00031-7
Keywords
environmental regulation, pollution abatement costs, productivity, pulp and paper industry
Repository Citation
Gray, Wayne B. and Shadbegian, Ronald J., "Plant vintage, technology, and environmental regulation" (2003). Economics. 132.
https://commons.clarku.edu/faculty_economics/132