The potential economic effects of environmental regulations are often a
concern when discussing policy initiatives. This study employs a regression discontinuity
(RD) design to test effects of ozone nonattainment status and the
accompanying regulations on economic conditions in US counties from 2004
through 2011. Comparing ozone nonattainment counties to similarly polluted
attainment counties, the results estimate roughly 24% lower employment in polluting
industries in nonattainment areas and a negative though statistically
insignificant effect on the number of polluting-industry establishments in nonattainment
areas. When using total county employment as the dependent variable, the
analysis finds no statistically significant evidence of nonattainment status effects.
Overall, the estimated effects in this analysis imply that any economic impacts of
nonattainment status are predominantly felt in those industries most directly
affected by ozone regulation. This could lead to changes in local industrial
composition

• Labor market impacts from ozone nonattainment status: a regression discontinuity analysis