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

We use a hazard model to estimate the effect of environmental regulation on the diffusion of membrane cell production technology in the chlorine manufacturing industry. We estimate the effect of regulation on both the adoption of the membrane technology at existing plants and on the exit of existing...

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Bibliographic Details
Main Authors Snyder, Lori D, Miller, Nolan, Stavins, Robert N
Format Publication
LanguageEnglish
Published AgEcon Search 2003
Subjects
environment
Environmental Economics and Policy
hazard model
L50
L65
Q20
Q28
regulation
technological change
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Summary:We use a hazard model to estimate the effect of environmental regulation on the diffusion of membrane cell production technology in the chlorine manufacturing industry. We estimate the effect of regulation on both the adoption of the membrane technology at existing plants and on the exit of existing plants using older technologies. We find that environmental regulation did affect the diffusion of the cleaner technology in the chlorine industry. However, it did so not by encouraging the adoption of membrane cells by existing facilities, but by reducing the demand for chlorine and hence encouraging the shutdown of facilities using the environmentally inferior options.
Bibliography:http://purl.umn.edu/10554
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