Environmental Regulation and the Competitiveness of U.S. Manufacturing: What Does the Evidence Tell Us?

Adam B. Jaffe et al.
Authors registered in the RePEc Author Service: Adam Jaffe

Journal of Economic Literature, 1995, vol. 33, issue 1, 132-163

Abstract: This survey assesses evidence on the linkage between environmental regulation and competitiveness, and finds little support for the conventional wisdom that environmental regulations have large adverse effects on competitiveness. Studies examining the effects of environmental regulations on net exports, overall trade flows, and plant-location decisions have produced estimates that are small, statistically insignificant, or not robust. We also find no systematic evidence supporting the revisionist hypothesis that environmental regulations stimulate innovation and improved competitiveness. Overall, the evidence suggests that the truth regarding the relationship between environmental protection and international competitiveness lies in between the extremes of the current debate.

Date: 1995
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