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- Title
The Impact of Environmental Regulation on Industry Location Decisions: The Motor Vehicle Industry.
- Authors
McConnell, Virginia D.; Schwab, Robert M.
- Abstract
Air pollution policy has moved steadily toward strict uniformity of regulations across regions. In particular, amendments to the Clean Air Act and Environmental Protection Agency rules in the 1970s and early 1980s have promoted a policy designed to reduce regional variation in air pollution controls required of industrial polluters. This policy was based on the premise that differences in environmental regulations would promote locational competition among regions. The fear was that polluting firms would migrate to clean areas where they would be subject to less stringent regulation; thus regions that had not met the federal standards would be unable to compete for new industry and jobs, and rents to existing industry would decline as industry chose less polluted locations. This argument is consistent, for example, with findings that Congressional voting on the PSD legislation in the late l970s which "levelled the playing field" across regions, was motivated primarily by this fear of locational competition. Hence, much of regional environmental policy has been based on the premise that many firms place a heavy weight on regional environmental policy when choosing a location.
- Subjects
UNITED States; AIR pollution; AIR quality; ENVIRONMENTAL protection; UNITED States. Environmental Protection Agency; GOVERNMENT policy; ENVIRONMENTAL auditing
- Publication
Land Economics, 1990, Vol 66, Issue 1, p67
- ISSN
0023-7639
- Publication type
Article
- DOI
10.2307/3146684