The confusing Relationship between environmental Policy and location Behaviour of Firms : A methodological Review of selected Case Studies

T. Jeppesen, H. Folmer

Research output: Contribution to journalArticleAcademicpeer-review

34 Citations (Scopus)

Abstract

The literature on the effects of environmental policy on the location behaviour of firms has so far failed to draw any firm conclusions. Different studies have shown that the effects may be zero, negative or positive. They always tend to be small. This paper argues that methodological issues form a major explanation for the contradictory results. It discusses the methodological strengths and weaknesses of data collection and secondary data analysis. Moreover, several typical studies are reviewed both in terms of methodology and findings. The paper finds that methodological issues tend to affect the results. The main substantive result is that at the present intensity of environmental policy plant closing is most likely to result, followed by reduced location of new firms whereas relocation is the least likely response. The results have to be interpreted with caution, however, because of methodological problems inherent to most studies.
Original languageEnglish
Pages (from-to)523-546
JournalAnnals of Regional Science
Volume35
Issue number4
DOIs
Publication statusPublished - 2001

Fingerprint Dive into the research topics of 'The confusing Relationship between environmental Policy and location Behaviour of Firms : A methodological Review of selected Case Studies'. Together they form a unique fingerprint.

  • Cite this