ABSTRACT
Since environmental quality became an important focus of government regulations in most in dustrialized countries in the early 1970s, many researchers have assessed the impact of these regulations on economic performance. For example, Leontief and Ford [11] and Pasurka [15] investigated the impact that environmental protection costs had on prices in the U.S.; Walter [24] calculated the effect of pollution abatement expenditures on U.S. trade; and Robinson [19] mea sured the distributional impact of the burden of industrial pollution abatement. A related issue involves the productivity consequences of environmental regulations. In this paper we address this issue by considering the impact of pollution abatement investment on productivity growth measures.
