publication . Preprint . 2015

Firms' Response and Unintended Health Consequences of Industrial Regulations

Christopher Hansman; Jonas Hjort; Gianmarco León;
Open Access
  • Published: 01 Feb 2015
Abstract
Regulations that constrain firms' externalities in one dimension can distort incentives and worsen externalities in other dimensions. In Peru's industrial fishing sector, the world's largest, fishing boats catch anchovy that plants along the coast convert into fishmeal. Matching administrative daily data on plant production, ground-level air quality data, hospital admissions records, and survey data on individual health outcomes, we first show that fishmeal production worsens adult and child health through air pollution emitted by plants. We then analyze the industry's response to a 2009 reform that split the Total Allowable Catch (TAC) into boat-specific, trans...
Subjects
Medical Subject Headings: fungi
free text keywords: industrial regulations, firms, Externalities, air pollution, Health, fishing, Peru, ITQs, jel:D2, jel:L5, jel:L7, jel:O1, jel:I1, jel:Q5

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