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

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Date

Aug. 31, 2003

Authors

Lori Snyder, Nolan Miller, and Robert Stavins

Publication

Working Paper

Reading time

1 minute

We use a hazard model to estimate the effect of environmental regulation on the diffusion of membrane cell production technology inthe chlorine manufacturing industry. We estimate the effect of regulation on both the adoption of the membrane technology atexisting plants and on the exit of existing plants using older technologies. We find that environmental regulation did affect thediffusion 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 theenvironmentally inferior options.

Topics

Data and Decision Tools

Authors

Lori Snyder

Nolan Miller

Robert N. Stavins

Co-Vice Chair, RFF Board of Directors; University Fellow; Professor, Harvard University

Robert Stavins is a university fellow at RFF and the Co-Vice Chair of the RFF Board of Directors. His research focuses on diverse areas of environmental economics and policy.

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