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Do Environmental Regulations Impede Economic Growth? A Case Study of the Metal Finishing Industry in the South Coast Basin of Southern California

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  • Ward Thomas

    (California State University, Northridge, CA, USA, thomas@csun.edu)

Abstract

Air pollution emitted from firms and industries in the United States poses a significant threat to human health and the environment. Economists have traditionally opposed environmental regulations based on the argument that regulations reduce economic growth. Some scholars, however, have argued that polluting firms often adjust to environmental regulations through technological innovations that have the opposite effect. This study examines the effects of environmental regulations on economic growth through a case study of the metal finishing industry in the South Coast Basin of Southern California. The industry in the Basin has been regulated since 1988 by the South Coast Air Quality Management District (AQMD) as a result of the industry’s use of hexavalent chromium. Based on a comparative analysis of the metal finishing industries in Chicago and Detroit, it appears that the AQMD regulations have not had a detrimental impact on the growth of the industry in the Basin.

Suggested Citation

  • Ward Thomas, 2009. "Do Environmental Regulations Impede Economic Growth? A Case Study of the Metal Finishing Industry in the South Coast Basin of Southern California," Economic Development Quarterly, , vol. 23(4), pages 329-341, November.
    • Handle: RePEc:sae:ecdequ:v:23:y:2009:i:4:p:329-341
    DOI: 10.1177/0891242409343184
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    References listed on IDEAS

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    2. Dong Guo & Satyajit Bose & Kristina Alnes, 2017. "Employment implications of stricter pollution regulation in China: theories and lessons from the USA," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 19(2), pages 549-569, April.

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