Environmental Regulation and Labor Reallocation: Evidence from the Clean Air Act

Walker, William R.

doi:10.1257/aer.101.3.442

Cited by 238 publications

(117 citation statements)

References 6 publications

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“…A related literature examines the employment effects of environmental regulation/protection where some studies find job losses (Henderson 1996, Khan 1997and Greenstone 2002, others find virtually no employment effects (Berman and Bui 2001, Morgenstern et al 2002and Cole and Elliott 2007 while Bezdek et al (2008) look at six states in the US and find a large positive jobs effects of environmental protection. More recently, Gray et al (2013) examine whether EPA regulations affect labor demand in the pulp and paper industry whilst Walker (2012) …”

Section: Literature Reviewmentioning

confidence: 99%

Environmental Jobs and Growth in the United States

Elliott

Lindley

2017

Ecological Economics

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Green growth is increasingly being seen as a means of simultaneously meeting current and future climate change obligations and reducing unemployment. This paper uses detailed industry-level data from the Bureau of Labor Statistic's Green Goods and Services survey to examine how the provision of so-called green goods and services has affected various aspects of the US economy. Our descriptive results reveal that those states and industries that were relatively green in 2010 became even greener in 2011. To investigate further we include green goods and services in a production function. The results show that between 2010 and 2011 industries that have increased their share of green employment have reduced their productivity although this negative correlation was only for the manufacture of green goods and not for the supply of green services. In further analysis we investigate skill-technology complementarities in the production of green goods and services and show that industries that increased their provision of green goods and services grew more slowly, reduced their expenditure on technology inputs and increased their demand for medium educated workers, whilst simultaneously reducing their demand for lower skilled workers.

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Section: Literature Reviewmentioning

confidence: 99%

Environmental Jobs and Growth in the United States

Elliott

Lindley

2017

Ecological Economics

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“…For example, prior work has shown that while nonattainment designation reduces ambient concentrations of particulates, it does so at the cost of some economic competitiveness (Greenstone, 2002;Greenstone, List, and Syverson, 2012;Walker, 2011Walker, , 2012. Therefore, nonattainment may also contribute to declining economic conditions which may impact longrun earnings capacity of children born into those counties.…”

Section: Econometric Specificationmentioning

confidence: 99%

“…For example, nonattainment designation influences production decisions of firms (Greenstone, 2002;Walker, 2011), and these may have consequences for the broader economic community (Walker, 2012). This being said, the estimates from Walker (2011Walker ( , 2012 suggest that the effect of nonattainment designation on the overall labor market to be small. Additionally, a regression of contemporaneous county level per capita income on CAAA enactment, as presented in Table 6, failed to detect an effect, which also suggests at most a minor effect on the economy.…”

mentioning

confidence: 99%

Every Breath You Take—Every Dollar You’ll Make: The Long-Term Consequences of the Clean Air Act of 1970

Isen¹,

Rossin‐Slater²,

Walker³

2017

Journal of Political Economy

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263

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This paper examines the long-term impacts of in-utero and early childhood exposure to ambient air pollution on adult labor market outcomes. We take advantage of a new administrative data set that is uniquely suited for addressing this question because it combines information on individuals' quarterly earnings together with their counties and dates of birth. We use the sharp changes in ambient air pollution concentrations driven by the implementation of the 1970 Clean Air Act Amendments as a source of identifying variation, and we compare cohorts born in counties that experienced large changes in total suspended particulate (TSP) exposure to cohorts born in counties that had minimal or no changes. We find a significant relationship between TSP exposure in the year of birth and adult labor market outcomes.

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“…There is evidence that environmental regulation also affects employment growth in regulated industries in the US [12]. Moreover, the costs of sectoral reallocation borne by individual workers may emerge not only in unemployment, but also in earnings losses after job changes [13].…”

Section: Competing Interestsmentioning

confidence: 99%