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  3. American Economic Review
  4. May 2011
  5. Environmental Regulation and Labor Reallocation: Evidence from the Clean Air Act

American Economic Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

Environmental Regulation and Labor Reallocation: Evidence from the Clean Air Act

  • W. Reed Walker
American Economic Review
vol. 101, no. 3, May 2011
(pp. 442–47)
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Abstract

This paper uses newly available data on plant level regulatory status linked to the Census Longitudinal Business Database to measure the impact of changes in county level environmental regulations on plant and sector employment levels. Estimates from a variety of specifications suggest a strong connection between changes in environmental regulatory stringency and both employment growth and levels in the affected sectors. The preferred estimates suggest that changes in county level regulatory status due to the 1990 Clean Air Act Amendments reduced the size of the regulated sector by as much as 15 percent in the 10 years following the changes.

Citation

Walker, W Reed. 2011. "Environmental Regulation and Labor Reallocation: Evidence from the Clean Air Act." American Economic Review, 101 (3): 442–47. DOI: 10.1257/aer.101.3.442

Additional Materials

JEL Classification

  • J23 Labor Demand
  • Q25 Renewable Resources and Conservation: Water
  • Q28 Renewable Resources and Conservation: Government Policy
  • Q52 Pollution Control Adoption Costs; Distributional Effects; Employment Effects
  • Q53 Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling