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Do Firms in Polluting Industries Outsource Pollution Abatement Services More? Panel Data Evidence from U.S. Industries

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  • Meng Sun

Abstract

This paper analyzes empirical evidence from U.S. manufacturing industries to understand which firms tend to outsource environmental services more. We construct a variable that measures the outsourcing level of pollution abatement employing the contract work cost data in the Pollution Abatement Costs and Expenditures Survey. Utilizing the panel data for 1992-94, the results indicate that firms in less polluting industries tend to outsource more environmental services. Moreover, the results remain robust when we use the 2005 data.

Suggested Citation

  • Meng Sun, 2017. "Do Firms in Polluting Industries Outsource Pollution Abatement Services More? Panel Data Evidence from U.S. Industries," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(8), pages 111-117, August.
    • Handle: RePEc:ibn:ijefaa:v:9:y:2017:i:8:p:111-117
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    References listed on IDEAS

    as
    1. Woodruff, Christopher, 2002. "Non-contractible investments and vertical integration in the Mexican footwear industry," International Journal of Industrial Organization, Elsevier, vol. 20(8), pages 1197-1224, October.
    2. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
    3. Daron Acemoglu & Philippe Aghion & Rachel Griffith & Fabrizio Zilibotti, 2010. "Vertical Integration and Technology: Theory and Evidence," Journal of the European Economic Association, MIT Press, vol. 8(5), pages 989-1033, September.
    4. Michael D. Whinston, 2003. "On the Transaction Cost Determinants of Vertical Integration," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 19(1), pages 1-23, April.
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    Cited by:

    1. Wang, Qianqian & Sun, Xinmeng & Xiong, Haoyang & Wang, Qi & Zhang, Bing, 2024. "Environmental taxes, environmental outsourcing, and pollution abatement: Evidence from Chinese industrial sewage discharge enterprises," Energy Economics, Elsevier, vol. 133(C).

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    More about this item

    Keywords

    environmental outsourcing; pollution intensity; transaction costs theory; property rights theory;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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