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Economic Development Quarterly
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Do Environmental Regulations Impede Economic Growth? A Case Study of the Metal Finishing Industry in the South Coast Basin of Southern California

Ward Thomas

California State University, Northridge, CA, USA, thomas{at}csun.edu

Air pollution emitted from firms and industries in the United States poses a significant threat to human health and the environment. Economists have traditionally opposed environmental regulations based on the argument that regulations reduce economic growth. Some scholars, however, have argued that polluting firms often adjust to environmental regulations through technological innovations that have the opposite effect. This study examines the effects of environmental regulations on economic growth through a case study of the metal finishing industry in the South Coast Basin of Southern California. The industry in the Basin has been regulated since 1988 by the South Coast Air Quality Management District (AQMD) as a result of the industry’s use of hexavalent chromium. Based on a comparative analysis of the metal finishing industries in Chicago and Detroit, it appears that the AQMD regulations have not had a detrimental impact on the growth of the industry in the Basin.

Key Words: environment • environmental regulations • sustainable economic growth • metal finishing

This version was published on November 1, 2009

Economic Development Quarterly, Vol. 23, No. 4, 329-341 (2009)
DOI: 10.1177/0891242409343184


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