Pollution control and inputs to production

Abstract

The primary concern of this paper is to identify the inputs required for air, water, and solid waste pollution abatement in the United States. Industry level data on pollution abatement expenditures in 1976 are decomposed into expenditures on various intermediate inputs and on two primary inputs—labor and capital. The 1971 input-output table is adjusted to reflect the input needs of pollution abatement technology. This revised direct input coefficients matrix is used to derive the gross output and primary input requirements of the 1971 final bill of goods.