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Assessing Multi-Dimensional Performances: Environmental and Economic Outcomes

Author

Listed:
  • Shadbegian, Ronald J.
  • Gray, Wayne B.

Abstract

This study examines the determinants of environmental and economic performance for plants in three traditional smoke-stack industries: pulp and paper, oil, and steel. We combine data from Census Bureau and EPA databases and Compustat on the economic performance, regulatory activity and environmental performance on air and water pollution emissions and toxic releases. We find that plants with higher labor productivity tend to have lower emissions. Regulatory enforcement actions (but not inspections) are associated with lower emissions, and state-level political support for environmental issues is associated with lower water pollution and toxic releases. There is little evidence that plants owned by larger firms perform better, nor do older plants perform worse.

Suggested Citation

Handle: RePEc:ags:nceewp:280842
DOI: 10.22004/ag.econ.280842
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