Do Firms in Polluting Industries Outsource Pollution Abatement Services More? Panel Data Evidence from U.S. Industries

  •  Meng Sun    


This paper analyzes empirical evidence from U.S. manufacturing industries to understand which firms tend to outsource environmental services more. We construct a variable that measures the outsourcing level of pollution abatement employing the contract work cost data in the Pollution Abatement Costs and Expenditures Survey. Utilizing the panel data for 1992-94, the results indicate that firms in less polluting industries tend to outsource more environmental services. Moreover, the results remain robust when we use the 2005 data.

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