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Review of Environmental Economics and Policy Advance Access originally published online on June 24, 2008
Review of Environmental Economics and Policy 2008 2(2):194-218; doi:10.1093/reep/ren009
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Published by Oxford University Press 2008.

Perspectives on Pollution Abatement and Competitiveness: Theory, Data, and Analyses

Carl Pasurka*

* Office of Policy, Economics and Innovation, US Environmental Protection Agency (1809T), 1200 Pennsylvania Ave., NW, Washington, DC 20460, USA; telephone: 202-566-2275; fax: 202-566-2373; E-mail: PASURKA.CARL{at}EPA.GOV.

The implementation of environmental regulations has raised concerns about the effect of pollution abatement on the competitiveness of firms, industries, and nations. These concerns have led to efforts to assess the relationship between pollution abatement and competitiveness. This article presents national- and industry-level data on pollution abatement costs and emissions, and discusses the theoretical and empirical literature on the link between pollution abatement and competitiveness. The article first reviews theoretical perspectives on the link between competitiveness and pollution abatement. Next, historical data on pollution abatement costs and emissions across nations and industries are summarized. Finally, the article reviews the empirical evidence on the link between pollution abatement and indicators of competitiveness.

JEL Classification: Q52

The author wishes to thank Ian Lange and an anonymous referee for helpful comments on earlier drafts of this study, and Yenmeng Li, Graeme Oakley, Carsten Stahmer, Kimio Uno, and Taiwan's Directorate General of Budget, Accounting, and Statistics (DGBAS) for assistance with data acquisition. All views expressed in this article are those of the author and do not reflect the opinions of the US Environmental Protection Agency. Of course, any errors are the sole responsibility of the author.


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