The Effects of Environmental Regulation on Technology Diffusion: The Case of Chlorine Manufacturing

• Published in: The American economic review Vol. 93; no. 2; pp. 431 - 435
• Main Authors: Snyder, Lori D., Miller, Nolan H., Stavins, Robert N.
• Format: Journal Article
• Language: English
• Published: Nashville American Economic Association 01.05.2003
• Subjects: Best available technology; Cell membranes; Chemical industry; Chlorine; Econometrics; Economic models; Economic policy; Economic regulation; Economic theory; Economics; Environmental policy; Environmental regulation; Environmental regulations; Environmental technology; Industrial regulation; International economics; Manufacturing; Manufacturing industries; Organic chemicals; Pollution; Pulp and paper industry; Regulation; Resource Conservation & Recovery Act-US; Shutdowns; Studies; Technological change; The Effects of Environmental Regulations on Pollution Emissions: Evidence from Plant-Level Data; Variables
• ISSN: 0002-8282; 1944-7981
• DOI: 10.1257/000282803321947470

The paper studies the effect of regulation on technological change in the chlorine manufacturing industry by focusing on the diffusion of membrane-cell technology, widely viewed as environmentally superior to both mercury-cell and diaphragm-cell technologies. The chlorine manufacturing industry has experienced a substantial shirt over time toward the membrane technology. This diffusion is the result of three different processes: adoption of cleaner technologies at existing plants, the use of membrane cells by newly constructed facilities, and the closing of facilities using diaphragm and mercury cells. This paper examines econometrically two of these aspects of diffusion to assess the effects of environmental regulation.