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The Environmental Effects of Economic Production: Evidence from Ecological Observations

Author

Listed:
  • Liang, Yuanning
  • Rudik, Ivan

    (Cornell University)

  • Zou, Eric Yongchen

Abstract

The environmental impacts of economic production extend beyond those directly affecting humans. This paper provides new evidence on the link between production and ecosystem decline using a novel dataset that compiles longitudinal ecological sampling information at tens of thousands of locations across the United States between 1960 and 2015. Local shocks in economic production, such as those driven by national military buildups, led to a significant reduction in species abundance, diversity, and stability, with one-third of the observed effects explained by the causal impact of air pollution. Government environmental regulations significantly mitigated production externalities.

Suggested Citation

  • Liang, Yuanning & Rudik, Ivan & Zou, Eric Yongchen, 2021. "The Environmental Effects of Economic Production: Evidence from Ecological Observations," SocArXiv qy76a_v1, Center for Open Science.
    • Handle: RePEc:osf:socarx:qy76a_v1
    DOI: 10.31219/osf.io/qy76a_v1
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