Journal of Regulatory Economics

, Volume 36, Issue 1, pp 83–93 | Cite as

The effects of air quality regulations on the location decisions of pollution-intensive manufacturing plants

Original Article


This research examines the effects of the 1977 Clean Air Act Amendments (CAAA) on the location decisions of pollution-intensive manufacturing plants. We develop a panel data set to analyze plant births of polluting manufacturers over time as a function county-level attainment status of the federal standard for ozone pollution. We find that more stringent county-level environmental regulations impact pollution-intensive capital flows through deterring new plant births. We also find that the impact of stricter regulations varies by pollution-intensity of manufacturers, with results suggesting that federal guidelines have a greater impact on high pollution intensive manufacturers than more moderate polluters.


Regulatory policies Environmental regulations Interjurisdictional competition 

JEL Classifications

R38 Q28 H73 


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Copyright information

© Springer Science+Business Media, LLC 2008

Authors and Affiliations

  1. 1.Center for Applied Demography and Survey Research, College of Human Services, Education, and Public PolicyUniversity of DelawareNewarkUSA
  2. 2.Department of EconomicsAppalachian State UniversityBooneUSA

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