Abstract
The method for measuring the effects of environmental regulation on the size distribution of industrial plants and the distribution of factor shares described in this paper focuses on the 20 industries with highest per unit pollution abatement costs and the 20 with the lowest costs. The study finds that compliance with environmental laws has not only reduced the number of plants in the affected industries, but has placed a greater burden on small rather than on large plants. Besides redistributing within-industry market shares, environmental regulation has increased the use of capital relative to labor. Although the disproportionate burden placed on small plants in the high abatement cost industries may have been unintended, it is likely that large firms will be less vocal opponents of environmental regulation than are small firms. 22 references, 12 tables.
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