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Does Environmental Protection Lead to Slower Productivity Growth in the Chemical Industry?

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  • Bruce Domazlicky
  • William Weber

Abstract

Efficiency and productivity growth is measured at the three-digit SIC level for six chemical industries for 1988–1993. The directional distance function is used to measure the lost chemical manufacturing output and the overproduction of toxic chemical releases. Total factor productivity growth is decomposed into a product of efficiency change and technical change. Accounting for toxic chemical releases, productivity grows at anannual rate of between 2.4% and 6.9%. We find no evidence that environmental protection measures reduce productivity growth. Copyright Kluwer Academic Publishers 2004

Suggested Citation

  • Bruce Domazlicky & William Weber, 2004. "Does Environmental Protection Lead to Slower Productivity Growth in the Chemical Industry?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 28(3), pages 301-324, July.
    • Handle: RePEc:kap:enreec:v:28:y:2004:i:3:p:301-324
    DOI: 10.1023/B:EARE.0000031056.93333.3a
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    References listed on IDEAS

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