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Has Environmental Policy really Reduced Productivity Growth ?

Robert Repetto, Dale Rothman, Paul Faeth, and Duncan Austin

The indicator for economic productivity began to lag in the United States in the early 1970s, just when major environmental laws went onto the books. Some people have argued that environmental regulation spawned the productivity slowdown. This report counters that argument by showing how the conventional measure of productivity growth misrepresents the industrial process by taking into account only pollution abatement costs and ignoring pollution damages averted. Dr. Robert Repetto and co-authors propose an alternative, unbiased productivity measure and demonstrate how this methodological change recasts the productivity picture in case studies of the electric power, pulp and paper, and agricultural sectors.

1996 / 46 pages

Has Environmental Protection Really Reduced Productivity Growth ? ISBN 1-56973-101-2pad$20.00pad
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