Sedigh, Golnaz (2008): Do environmental regulations reduce greenhouse gas emissions? A study on Canadian industries.
Download (127kB) | Preview
This paper uses the Canadian industrial macro-level data from CANSIM to investigate the effect of formal and informal regulations on pollution intensity. Proxies for formal and informal regulation variables are defined as in Cole et al., 2005. The econometrics model is a panel with 23 manufacturing industries over 10 years, from 1994 to 2003. Manufacturing industries are chosen because they are the most pollutant industries. It is found that formal and informal regulations have significant effects on decreasing the direct and indirect greenhouse gas emissions in Canadian industries. Provinces with younger populations have stricter informal regulation on pollution density, because younger populations care more about the future quality of the environment. Also, provinces with a higher rate of unemployment have less formal regulation on pollution density; for those provinces, providing employment for citizens is more important than providing a healthy environment. Wealthier provinces with a low employment rate face less pressure from society and can spend more money on the environment; therefore, they have lower pollution density. Furthermore, industries with large average firm size can decrease emissions more than other industries. The cost of controlling the emissions decreases with firm size because of economies of scale.
|Item Type:||MPRA Paper|
|Original Title:||Do environmental regulations reduce greenhouse gas emissions? A study on Canadian industries|
|Keywords:||Keywords: Canadian manufacturing industries; Air pollution; Environmental regulations|
|Subjects:||Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q28 - Government Policy
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture; Natural Resources; Energy; Environment; Other Primary Products
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q21 - Demand and Supply
L - Industrial Organization > L6 - Industry Studies: Manufacturing > L60 - General
|Depositing User:||Golnaz Sedigh|
|Date Deposited:||16. Aug 2008 10:51|
|Last Modified:||12. Feb 2013 22:02|
1- Acharya, R. C., & Coulombe, S. (2006). Research and Development Composition and Labour Productivity Growth in 16 OECD Countries, Industry Canada’s working paper 2006-02, IC 60040
2- Antweiler, W., Copeland, B.R. & Taylor, M.S. (2001). Is free trade good for the environment? The American Economic Review, 91(4), 877–908.
3- Batrik, T. J. (1988). The Effects of Environmental Regulation on Business Location in the United States. Growth and Change, Summer, 22–44.
4- Berman, E. & Bui L.T.M. (2001) Environmental regulation and labor demand: evidence from the South Coast Air Basin. Journal of Public Economics, 79, 265–295
5- Cole, M. A., Elliott, R. J. R. (2003). Determining the trade–environment composition effect: the role of capital, labor and environmental regulations. Journal of Environmental Economics and Management, 46, 363–383
6- Cole, M. A., Elliott, R. J. R., & Shimamoto, K. (2005) Industrial characteristics, environmental regulations and air pollution: an analysis of the UK manufacturing sector. Journal of Environmental Economics and Management, 50, 121-143
7- Cole, M.A., Elliott, R.J.R., Wu, S. (2007) Industrial activity and the environment in China: An industry-level analysis. China Economic Review, xx , xxx–xxx
8- Duffy-Deno, K. T. (1992). Pollution Abatement Expenditures and Regional Manufacturing Activity. Journal of Regional Science, 32(4), 419–36.
9- Friedman, J., Gerlowski, D. A., & Silberman, J. (1992). What Attracts Foreign Multinational Corporations? Evidence from Branch Plant Location in the United States. Journal of Regional Science, 32(4), 403–18.
10- Hartman, R., Huq, M., Wheeler, D. (1997a). Why paper mills clean up: determinants of pollution abatement in four Asian countries. World Bank, Policy Research Department Working Paper, No. 1710, January.
11- Hartman, R., Singh, M., Wheeler, D. (1997b). The cost of air pollution abatement. Applied Economics, 29(6)
12- Hettige, H., Huq, M. & Pargal, S., & Wheeler, D. (1996). Determinants of pollution abatement in developing countries: Evidence from South and Southeast Asia. World Development, Elsevier, 24(12), 1891-1904
13- Hettige, H., Mani, M., & Wheeler D. (2000). Industrial pollution in economic development: the environmental Kuznets curve revisited. Journal of Development Economics, 62, 445–476
14- Jorgenson D. W., & Wilcoxen, P. J. (1990). Intertemporal general equilibrium modeling of U.S. environmental regulation. Journal of Policy Modeling, 12(4), 715-744
15- Kathuria, V. (2007). Informal regulation of pollution in a developing country: Evidence from India. Ecological Economics, 63, 403-417
16- McConnell, K.E. (1997). Income and the demand for environmental quality. Environment and Development Economics, 2(4), 383–399.
17- Merlevede, B., Verbeke, T., & De Clercq, M. (2006) The EKC for SO2: Does firm size matter? Ecological Economics 59, 451-461
18- Pargal, S., & Wheeler, D. (1995) Informal regulation of industrial pollution in developing countries: Evidence from Indonesia. Policy Research Department Working Paper, No. 1416 (Washington, DC: The World Bank, 1995).
19- Pargal, S., Wheeler, D. (1996). Informal regulation in developing countries: evidence from Indonesia. Journal of Political Economy 104 (6), 1314–1327
20- Regens, J. L., Seldon B. J., & Elliott, E. (1997). Modeling Compliance to Environmental Regulation: Evidence From Manufacturing Industries. Journal of Policy Modeling, 19(6), 683-696
21- Schlottmann, A. (1976). A Regional Analysis of Air Quality Standards, Coal Conversion, and the Steam-Electric Coal Market. Journal of regional science, 16(8), 375-387
22- Tannenwald, R. (1997). State regulatory policy and economic development. New England Economic Review, Federal Reserve Bank of Boston, issue Mar, 83-108
23- Wang, H., Wheeler, D. (1996). Pricing industrial pollution in China: an econometric analysis of the levy system. World Bank, Policy Research Department Working Paper, No. 1644, September