VJ Hartjes 1
7. APPENDIX
A. Pollution-intensive and low pollution industries as identified by other authors
Cole and Elliot (2005) top 10 based on pollution abatement operating cost as a share of value added:
1. Petroleum SIC 29
2. Primary metals SIC 33
3. Paper SIC 26
4. Chemical industries SIC 28
5. Tobacco SIC 21
6. Leather SIC 31
7. Stone, clay, glass SIC 32 8. Fabricated metal products SIC 34
9. Lumber and wood SIC 24
10. Textile mill SIC 22
Grether and de Melo (2003), based on Mani and Wheeler (1999) according to an index of emission intensity in the air, water and heavy metals in the US: Pulp and paper (341); Industrial chemicals (351); Non-metallic minerals (369); Iron and steel (371); Non-ferrous metals (372).
Mani and Wheeler (1998) also identified the five cleanest industries: (textiles (ISIC 321), Non-electric machinery (382), Electric machinery (383), transport equipment (384), instruments (385).
Kahn and Yoshine (2004), based on energy consumption per dollar of value added:
Paper and pulp; Agricultural chemicals; Industrial chemicals; Primary metals; Glass, stone and clay. The authors check their results with indicators of industry emissions published by the World Bank, and find a close correlation with their energy consumption measure.
Xing and Kolstad (2002), based on pollution abatement capital expenditure as percentage of total capital expenditures find Chemicals and allied products and Primary metals to be pollution intensive. The authors identify Food and kindred products; Industrial machinery and equipment as much less pollutive.
Smarzynska and Wei (2001) made a classification of high / medium / low pollution and assigned a large number of 3 SIC code industries to these three categories. In the high pollution group I find confirmation for:
SIC 26: Paper and pulp SIC 28: Chemicals
SIC 32: Stone, clay and glass SIC 33: Primary metals
In the low pollution group were Electronics and Textile mill products prominently present.
Tobey (1990) selected industries with the highest pollution abatement cost as percentage of total cost: Mining; Primary non-ferrous metals; Paper and pulp; Primary Iron and Steel; Chemicals.
Beers and Van den Bergh (2000) refer to Bjorn, Golomek and Raknerud (1997), who selected Paper, pulp and paperboard; Irons, steels and ferroalloys; and Basic industrial chemicals on the basis of having a substantial share of plants that have been subject to stringent environmental regulations.
referenced clean 3 digit SIC codes, and cross-referenced this with 2 digit NACE Rev 1.1 codes. I also undertook this cross-referencing for the aforementioned dirty industries. After taking the above into account, the following industries are included in this paper:
CLEAN US SIC NACE REV 1.1
Textile mill products 22 17
Rubber and plastic products 30 25
Transport excl. ships and railroads 37 34
Electronics 36 30+31+32
DIRTY US SIC NACE REV 1.1
Paper and allied products 26 21
Chemicals (industrial) 28 24
Stone, clay and glass 32 26
Primary metals 33 27
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B. Number of observations
Country Code # of observations
C. Commentary EKS, PPP
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D. TABLE 8 Industry-level characteristics
Country Code K/L ratio DUMKLI Labor cost High skill labor
E. TABLE 9 Correlations
TABLE 9 Correlations
ENV TREAT DIFF DUMKL DUMCLDRT MRKT LABCOST TAX SIZE
ENV 1.000000
TREAT 0.489667 1.000000
DIFF -0.660935 -0.323666 1.000000
DUMKL -0.231236 -0.509856 0.152831 1.000000
DUMCLDRT -9.05E-19 -0.000319 -1.91E-06 0.001122 1.000000
MRKT -0.372103 -0.542042 0.245938 0.204914 1.11E-18 1.000000
LABCOST 0.574184 0.438091 -0.379500 -0.271996 0.095208 0.178676 1.000000
TAX 0.624159 0.641600 -0.412529 -0.327208 -1.47E-17 -0.182334 0.502968 1.000000
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F. TABLE 10 Build-on structure TABLE 10 A, B, C
A. a. b. c. d. e. f. g. h. i. ENV -0.159919 [0.041265]*** -0.186874 [0.042735]*** -0.182474 [0.042418]*** 0.198920 [0.039538]*** 0.075893 [0.062503] 0.291734 [0.072792]*** 0.291674 [0.072865]*** 0.316391 [0.081540]*** 0.364720 [0.087817]*** DUMKLINDU -0.161170 [0.061708]*** -0.152530 [0.061314]** -0.271050 [0.062492]*** -0.217211 [0.066217]*** -0.238278 [0.064727]*** -0.238974 [0.064802]*** -0.232222 [0.065583]*** 0.305230 [0.368361] DUMCLDRT 0.528176 [0.060624]*** 0.525575 [0.060914]*** 0.500242 [0.061688]*** 0.488507 [0.061523]*** 0.489621 [0.061589]*** 0.718965 [0.347584]** 0.766914 [0.348503]** MRKT 3.43E-06 [1.95E-07]*** 3.02E-06 [2.49E-07]*** 3.21E-06 [2.60E-07]*** 3.21E-06 [2.60E-07]*** 3.21E-06 [2.60E-07]*** 3.16E-06 [2.62E-07]*** LABCOST 1.047477 [0.414868]** 1.380376 [0.409496]*** 1.385976 [0.409992]*** 1.395133 [0.410218]*** 1.363205 [0.410832]*** TAX -0.086322 [0.013304]*** -0.086457 [0.013313]*** -0.086429 [0.013319]*** -0.086720 [0.013331]*** SIZE 1.58E-08 [1.98E-09]*** 1.58E-08 [1.98E-09]*** 1.58E-08 [1.98E-09]*** ENV*DUMCLDRT -0.043933 [0.065493] -0.050378 [0.065537] ENV*DUMKLINDU -0.103731 [0.070004]* McFadden R² 0.001433 0.002078 0.009364 0.040504 0.041091 0.045038 0.049538 0.049580 0.049790
Note: Standard errors in brackets. *** significant at 1% ** significant at 5% * significant at 10%
B. a. b. c. d. e. f. g. h. i. TREAT -0.043469 [0.004203]*** -0.057005 [0.004522]*** -0.056857 [0.004514]*** -0.019593 [0.005277]*** -0.068732 [0.007663]*** -0.065105 [0.008390]*** -0.065186 [0.008397]*** -0.060032 [0.009707]*** -0.061037 [0.00978]*** DUMKLINDU -0.496172 [0.064434]*** -0.493137 [0.064395]*** -0.406428 [0.065396]*** -0.339857 [0.065384]*** -0.336478 [0.065483]*** -0.337405 [0.065561]*** -0.331952 [0.065831]*** -0.828496 [0.438203]* DUM 0.529796 [0.060728]*** 0.517076 [0.060951]*** 0.450539 [0.061183]*** 0.448808 [0.061201]*** 0.450014 [0.061269]*** 0.809168 [0.356157]** 0.795793 [0.358216]** MRKT 2.44E-06 [1.97E-07]*** 1.07E-06 [2.39E-07]*** 1.09E-06 [2.39E-07]*** 1.10E-06 [2.39E-07]*** 1.09E-06 [2.40E-07]*** 1.16E-06 [2.47E-07]*** LABCOST 3.647692 [0.350972]*** 3.718435 [0.354348]*** 3.725470 [0.354760]*** 3.733167 [0.354750]*** 3.638043 [0.366613]*** TAX -0.013059 [0.012329] -0.013149 [0.012342] -0.013133 [0.012349] -0.013567 [0.012327] SIZE 1.58E-08 [1.98E-09]*** 1.58E-08 [1.98E-09]*** 1.58E-08 [1.98E-09]*** TREAT*DUM -0.008848 [0.008637] -0.008623 [0.008686] TREAT*DUMKLINDU 0.012676 [0.011037] Mc Fadden R² 0.011837 0.017355 0.024660 0.039548 0.049425 0.049531 0.054039 0.054138 0.054260
C. a. b. c. d. e. f. g. h. i. DIFF 0.162215 [0.027959]*** 0.174247 [0.028458]*** 0.172532 [0.028371]*** 0.001787 [0.027503] 0.100723 [0.031886]*** 0.066111 [0.032519]** 0.039152 [0.032905] 0.061917 [0.043985] 0.035656 [0.050834] DUMKLINDU -0.156820 [0.060700]*** -0.149573 [0.060563]** -0.318976 [0.062101]*** -0.189138 [0.065701]*** -0.203484 [0.064984]*** -0.207208 [0.065011]*** -0.213347 [0.065475]*** -0.253666 [0.076916]*** DUM 0.528582 [0.060634]*** 0.519861 [0.060945]*** 0.479027 [0.061273]*** 0.465140 [0.061306]*** 0.467945 [0.061373]*** 0.496816 [0.071685]*** 0.501465 [0.071762]*** MRKT 2.90E-06 [1.73E-07]*** 2.50E-06 [1.85E-07]*** 2.30E-06 [1.87E-07]*** 2.37E-06 [1.88E-07]*** 2.37E-06 [1.88E-07]*** 2.35E-06 [1.89E-07]*** LABCOST 1.941456 [0.305928]*** 2.613793 [0.330998]*** 2.527757 [0.332402]*** 2.521366 [0.332465]*** 2.499799 [0.333096]*** TAX -0.054589 [0.011816]*** -0.057094 [0.011838]*** -0.057158 [0.011841]*** -0.057572 [0.011867]*** SIZE 1.54E-08 [2.00E-09]*** 1.54E-08 [2.00E-09]*** 1.54E-08 [2.00E-09]*** DIFF*DUM -0.039226 [0.049976]*** -0.035442 [0.049926] DIFF*DUMKLINDU 0.052124 [0.051306] Mc Fadden R² 0.003267 0.003898 0.011193 0.038222 0.041908 0.043867 0.048111 0.048169 0.048267
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G. TABLE 11 High-skill variable
TABLE 11 A, B, C Regression statistics
ENV 21 24 27
ENV 0.507042 [0.378452] 0.418252 [0.124419]*** -1.058281 [0.383584]***
DUMKLINDU 10.07178 [3.770254]*** -4.204549 [0.657480]*** -14.77555 [2.016435]***
MRKT 4.24E-06 [1.78E-06]** 3.60E-06 [3.75E-07]*** 2.12E-06 [9.39E-07]**
HIGHSKILL -0.361046 [0.050372]*** 0.153119 [0.027967]*** 0.138739 [0.055239]**
TAX -0.151289 [0.073132]** -0.061941 [0.022746]*** -0.012081 [0.045734]
SIZE 1.41E-07 [5.08E-08]*** 2.23E-08 [5.56E-09]*** 2.10E-08 [1.19E-08]*
ENV*DUMKLINDU -2.154596 [0.759056]*** 0.678494 [0.123661]*** 2.753497 [0.387803]***
Mc Fadden R² 0.219730 0.079076 0.183352
Note: Standard errors in brackets. *** significant at 10% ** significant at 5% * significant at 1% B.
TREAT 21 24 27
TREAT 0.032320 [0.037563] -0.134041 [0.017547]*** -0.357464 [0.054164]***
DUMKLINDU 21.30901 [7.172499]*** -7.009428 [0.831783]*** -19.31526 [2.051490]***
MRKT 3.60E-06 [1.78E-06]** -8.55E-07 [6.15E-07] -6.88E-06 [1.91E-06]***
HIGHSKILL -0.372563 [0.049223]*** 0.269715 [0.036869]*** 0.660945 [0.114604]***
TAX -0.126774 [0.060704]** 0.207307 [0.037334]*** 0.520897 [0.102461]***
SIZE 1.41E-07 [5.10E-08]*** 2.26E-08 [5.59E-09]*** 2.16E-08 [1.21E-08]*
TREAT*DUMKL -0.594067[0.196897]*** 0.158457 [0.021144]*** 0.474891 [0.050983]***
Mc Fadden R² 0.227684 0.088499 0.222955
Note: Standard errors in brackets. *** significant at 10% ** significant at 5% * significant at 1% C.
DIFF 21 24 27
DIFF2 -0.013387 [0.190762] -0.005209 [0.070630] 0.455047 [0.129973]***
DUMKLINDU -0.959616 [0.369892]*** -0.670152 [0.151253]*** -0.226770 [0.258277]
MRKT 6.97E-06 [1.06E-06]*** 2.79E-06 [3.36E-07]*** 3.25E-06 [6.29E-07]***
HIGHSKILL -0.386528 [0.051259]*** 0.084613 [0.022666]*** 0.081312 [0.042770]*
TAX -0.135117 [0.051872]*** -0.009350 [0.020433] 0.054339 [0.040923]
SIZE 1.29E-07 [5.16E-08]** 2.37E-08 [5.61E-09]*** 1.89E-08 [1.18E-08]
DIF*DUMKLINDU 0.297914 [0.252303] -0.233598 [0.099785]** -0.874396 [0.163044]***
Mc Fadden R2 0.195962 0.060445 0.096220
