Author: Davis, Barbara A.; Garn, Harvey A.; Ledebur, Larry C.; and Wolman, Harold L.

Publication Year: 1979

Media Type: Report

Summary:

The research reported in this study addresses three major questions: How, and under what circumstances, may environmental conditions influence the economic activity of industry and the work force? What does the existing literature show about such influences and their significance? Where are there gaps in knowledge about these influences which can be addressed in subsequent research?

Abstract:

The research reported in this study addresses three major questions: How, and under what circumstances, may environmental conditions influence the economic activity of industry and the work force? What does the existing literature show about such influences and their significance? Where are there gaps in knowledge about these influences which can be addressed in subsequent research?

In a general sense, no one doubts that there is an inter-dependent relationship between environmental conditions and economic activity. The cornerstone of the idea of comparative advantage is that different Natural endowments help determine what things can best be done where. Broadening the definition of environmental conditions to include social and cultural aspects of places as well as natural endowments does nothing to refute this general conception. Similarly, there is no reason to doubt that economic activity in particular places has effects on environmental conditions.

Some industrial processes produce by-products or waste which deplete the natural environment - air, noise and water pollution are excellent examples. Urban agglomerations of people and industrial organizations produce a complex mixture of desirable and undesirable environmental effects - such as providing a sufficient demand for on-going cultural activities, offering a wide range of employment options and creating congestion at the same time. In turn, it seems reasonable to suppose that such effects on environmental conditions would result in potential shifts in the comparative advantage of places over time, leading to new assessments by firms and households about where best to conduct their activities.

In spite of wide agreement on this general picture of the mutual inter-dependence of environmental conditions and economic activity, there is little agreement on the relative importance of particular elements of the environment or, indeed, on the importance of environmental conditions relative to other factors known to influence economic activity. Consequently, there appears to be a substantial interest in an examination of the branch of the relationship which runs from environmental conditions to economic activity.

CONTENTS
Chapter 1. Executive Summary of conclusions.
Chapter 2. Effects of environmental conditions on economic activity: conceptual 
                issues.
Chapter 3. Introduction to literature reviews.
Chapter 4. Causality in population distribution and employment location.
Chapter 5. The role of environmental amenities in residential preferences.
Chapter 6. The impact of environmental conditions and amenities on firm 
                location decisions.
Chapter 7. Amenity-Disamenity wage effects.
Chapter 8. The impact of environmental regulations on the location of 
                economic activity.

Tables and Illustrations:

Chapter 5.

1. Detailed reasons for moving given by household heads moving between States.
2. Persons moving to and from each region, according to reason for moving.
3. A comparison of surveys of residential preferences in the from 1948 to 1978.
4. Residential preference by present place of resident (percent).
5. Actual and preferred residential location, , 1972 and 1974.
6. Public preferences in residential location.
7. City size and quality of life.

Chapter 6.

1. Percent strongly encouraging-discouraging response.

Chapter 7.

1. A comparison of urban disamenity estimates.
2. Actual and computed differences in real wages between four pairs of cities.

Chapter 8.

1. Pollution control investment, by industry, as percentage of total plant and equipment investment.
2. Regional distributions of plant closings and jobs affected.

Figure 1. Chapter 1. Linkages between environmental amenities and 
                              the location of economic activity.
Figure 1. Chapter 2. Accessibility, mobility and number of places where
                              environmental service is available.
Figure 1. Chapter 5. Reasons for residential preferences.

Arts & Intersections:

Categories: Creative Economies