Nottingham Centre for Research on
Globalisation and Economic Policy (GEP)

GEP Research Paper 04/22

Industrial Characteristics, Environmental Regulations and Air Pollution: An Analysis of the UK Manufacturing Sector

Matthew A. Cole, Robert J.R. Elliott and Kenichi Shimamoto

Abstract

This paper examines and quantifies the complex linkages between industrial activity, environmental regulations and air pollution. Couched in terms of the demand for, and the supply of, environmental services we utilize a new dataset of UK industry specific emissions for a variety of pollutants between 1990 and 1998. Our analysis allows us to investigate the role played by different determinants of emissions intensity. We find pollution intensity to be a positive function of energy use and physical and human capital intensity. Conversely, we find pollution intensity to be a negative function of the size of the average firm in an industry, the productivity of an industry and the industry's expenditure on capital and research and development. Our results also indicate that regulations, both formal and informal, have been successful in reducing pollution intensity.

Issued in August 2004.

This paper is available in PDF format .

Nottingham Centre for Research on Globalisation and Economic Policy

Sir Clive Granger Building
University of Nottingham
University Park
Nottingham, NG7 2RD

Enquiries: hilary.hughes@nottingham.ac.uk