Environmental regulations and productivity growth: The case of Fossil-fueled Electric Power Generation

Frank M. Gollop, Mark J. Roberts

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

This paper measures and analyzes the effect of sulfur dioxide emission restrictions on the rate of productivity growth in the electric power industry over the 1973-79 business cycle. A firm-specific measure of regulatory intensity is developed which depends on the severity of the emission standard, the extent of enforcement, and the unconstrained emission rate relevant to each utility. The results indicate that emission regulations result in significantly higher generating costs, primarily from the increased use of low-sulfur fuels. The average rate of productivity growth was reduced by 0.59 percentage points per year for constrained utilities.

Original languageEnglish (US)
Title of host publicationEconomic Costs and Consequences of Environmental Regulation
PublisherTaylor and Francis
Pages43-64
Number of pages22
ISBN (Electronic)9781315188010
ISBN (Print)9781138731141
Publication statusPublished - Jan 18 2018

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All Science Journal Classification (ASJC) codes

  • Social Sciences(all)

Cite this

Gollop, F. M., & Roberts, M. J. (2018). Environmental regulations and productivity growth: The case of Fossil-fueled Electric Power Generation. In Economic Costs and Consequences of Environmental Regulation (pp. 43-64). Taylor and Francis.