The Clean Air Act Amendments and Firm Investment in Pollution Abatement Equipment
研究了1990年《清洁空气法修正案》的制定和执行不确定性如何影响企业投资空气污染治理设备，发现法案通过可能性显著影响投资，而执法行动的影响较弱且仅在法案通过后显著。
<i>The command-and-control approach to environmental regulation requires that firms install prescribed technologies to meet specified goals. However, environmental regulations change frequently; in addition, the enforcement agency cannot perfectly monitor firm compliance. We examine the impact of uncertainties surrounding the enactment and the enforcement of the Clean Air Act Amendments of 1990 on firm investment in air pollution abatement equipment. We find that our measures of the likelihood of CAAA passage clearly affect a firm’s investment in pollution equipment. Enforcement actions also affect a firm’s investment, but these effects are weaker and are statistically significant only after enactment.</i>