We analyze the connection between productivity, pollution abatement expenditures, and other measures of environmental regulation for plants in three industries (paper, oil, and steel). We examine data from 1979 to 1990, considering both total factor productivity levels and growth rates. Plants...

We analyze the connection between productivity, pollution abatement expenditures, and other measures of environmental regulation for plants in three industries (paper, oil, and steel). We examine data from 1979 to 1990, considering both total factor productivity levels and growth rates. Plants...

The popular belief is that environmental regulation must reduce employment, since such regulations are expected to increase production costs, which would raise prices and thus reduce demand for output, at least in a competitive market. Although this effect might seem obvious, a careful...