Accounting for Air Pollution Emissions in Measures of State Manufacturing Productivity Growth

Journal of Regional Science - Tập 41 Số 3 - Trang 381-409 - 2001
Rolf Färe1, Shawna Grosskopf1, Carl A. Pasurka2
1Oregon State University, Corvallis
2U.S. Environmental Protection Agency

Tóm tắt

A Malmquist‐Luenberger productivity index is employed to account for both marketed output and the output of pollution abatement activities of U.S. state manufacturing sectors for –1986. The index allows us to decompose the change in productivity into measures of change in efficiency and technical change. By accounting for the change in emissions, average annual productivity growth is 3.6 percent, whereas it is 1.7 percent when emissions are ignored. We also find adjusted productivity growth improved after 1977, and “Frost Belt” states with rapidly growing manufacturing sectors have significantly higher rates of productivity growth than “Sun Belt” states with slow growing manufacturing sectors.

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