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- Title
Accounting for Air Pollution Emissions in Measures of State Manufacturing Productivity Growth.
- Authors
Färe, Rolf; Grosskopf, Shawna; Pasurka, Jr., Carl A
- Abstract
A Malmquist-Luenberger productivity index is employed to account for both marketed output and the output of pollution abatement activities of U.S. state manufacturing sectors for –1986. The index allows us to decompose the change in productivity into measures of change in efficiency and technical change. By accounting for the change in emissions, average annual productivity growth is 3.6 percent, whereas it is 1.7 percent when emissions are ignored. We also find adjusted productivity growth improved after 1977, and “Frost Belt” states with rapidly growing manufacturing sectors have significantly higher rates of productivity growth than “Sun Belt” states with slow growing manufacturing sectors.
- Subjects
UNITED States; INDUSTRIAL productivity; AIR pollution; ECONOMICS
- Publication
Journal of Regional Science, 2001, Vol 41, Issue 3
- ISSN
0022-4146
- Publication type
Article
- DOI
10.1111/0022-4146.00223