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A Direct Estimate of the Technique Effect: Changes in the Pollution Intensity of US Manufacturing, 1990-2008

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  • Arik Levinson

Abstract

Pollution emitted by US manufacturers is falling while output is rising. What accounts for this cleanup? Prior studies attribute the majority to "technique," a mix of input substitution, process changes, and end-of-pipe controls. But that estimate is a residual left over after calculating other explanations. This paper provides the first direct estimate of the technique effect. I calculate analogues to Laspeyres and Paasche price indexes across more than 400 industries for six major air pollutants. The directly estimated technique effect confirms the indirect estimates. Production technique changes account for 90% of the overall cleanup of US manufacturing.

Suggested Citation

  • Arik Levinson, 2015. "A Direct Estimate of the Technique Effect: Changes in the Pollution Intensity of US Manufacturing, 1990-2008," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 2(1), pages 43-56.
    • Handle: RePEc:ucp:jaerec:doi:10.1086/680039
    DOI: 10.1086/680039
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    1. Arik Levinson, 2009. "Technology, International Trade, and Pollution from US Manufacturing," American Economic Review, American Economic Association, vol. 99(5), pages 2177-2192, December.
    2. Ederington Josh & Levinson Arik & Minier Jenny, 2004. "Trade Liberalization and Pollution Havens," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(2), pages 1-24, November.
    3. Matthew Cole, 2000. "Air Pollution and ‘Dirty’ Industries: How and Why Does the Composition of Manufacturing Output Change with Economic Development?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 17(1), pages 109-123, September.
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    6. Hettige, Hemamala & Lucas, Robert E B & Wheeler, David, 1992. "The Toxic Intensity of Industrial Production: Global Patterns, Trends, and Trade Policy," American Economic Review, American Economic Association, vol. 82(2), pages 478-481, May.
    7. Cole, Matthew A., 2004. "US environmental load displacement: examining consumption, regulations and the role of NAFTA," Ecological Economics, Elsevier, vol. 48(4), pages 439-450, April.
    8. Claire Brunel, 2014. "Pollution Offshoring and Emission Reductions in European and US Manufacturing," Working Papers gueconwpa~14-14-01, Georgetown University, Department of Economics.
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    More about this item

    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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