The Effect of Environmental Policy on Firm Behaviour and Health

Project leader


Funding source

Formas - The Swedish Research Council for Environment, Agricultural Sciences and Spatial Planning

Project Details

Start date: 01/01/2016
End date: 31/12/2018
Funding: 3000000 SEK


Understanding how firms react to environmental regulation, as well as any subsequent public health implications from such regulation, is important for the design of environmental policy. However, it is a difficult task to isolate the effect of regulation from other causes. One of the aims of economists is to disentangle the effect of one factor from other sources and establish causal relationships between cause and effect to a broad field of economic topics. As the first attempt of its sort, we will study in detail the effect of an environmental policy for air pollution on economic outcomes and public health by exploiting a historically unique environmental policy decision, the Clean Air Act in the UK in the 1950s. Specifically, we will study the effect of this policy on firm behaviour, pollution abatement, health and cognitive skill since these are all important determinants of welfare. The results of our analysis will increase our understanding of the effects of pollution abatement regulation and be informative for policy design at the local, national, and international level.

Last updated on 2017-07-08 at 11:00