Technology, International Trade, and Pollution from US Manufacturing
American Economic Review
vol. 99,
no. 5, December 2009
(pp. 2177-92)
Abstract
Pollution emitted by US manufacturers declined markedly over the past several decades, even as real manufacturing output increased. I first show that most of the decline in US manufacturing pollution has resulted from changing production processes ("technology"), rather than changes in the mix of goods produced. I then show that increased net imports of polluting goods ("international trade") accounts for only a small portion of the pollution reductions from the changing mix of goods. Together, these two findings demonstrate that shifting polluting industries overseas explains only a minor part -- less than 10 percent -- of the cleanup of US manufacturing. (JEL F18, L23, L60, O30, Q52, Q53)Citation
Levinson, Arik. 2009. "Technology, International Trade, and Pollution from US Manufacturing." American Economic Review, 99 (5): 2177-92. DOI: 10.1257/aer.99.5.2177Additional Materials
JEL Classification
- F18 Trade and Environment
- L23 Organization of Production
- L60 Industry Studies: Manufacturing: General
- O30 Technological Change; Research and Development: General
- Q52 Pollution Control Adoption Costs; Distributional Effects; Employment Effects
- Q53 Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling