This paper examines unintended effects of air quality regulation on decisions of major polluters, using plant data for 1963 to 1992. A key regulatory tool since 1978 is the annual designation of county air quality attainment status, where non-attainment status triggers specific equipment...

This paper examines unintended effects of air quality regulation, using plant data for 1963-92. A key regulatory tool since 1978 is the annual designation of county air quality attainment status. Nonattainment status triggers specific equipment requirements, with the severity and enforcement of...

We estimate a distance function and derive producer shadow prices for SO2 and PM-10 emissions. The shadow prices are used to adjust a traditional measure of total factor productivity growth in order to account for the reallocation of inputs from production of the marketed output to pollution...

A Malmquist-Luenberger productivity index is employed to account for both marketed output and the output of pollution abatement activities of U.S. state manufacturing sectors for 1974-1986. The index allows us to decompose the change in productivity into measures of change in efficiency and...