HKS Faculty Research Working Paper Series
HKS Working Paper No. RWP03-014
January 2003
Abstract
We use a hazard model to estimate the effect of environmental regulation on the diffusion of
membrane cell production technology in the chlorine manufacturing industry. We estimate the
effect of regulation on both the adoption of the membrane technology at existing plants and on the
exit of existing plants using older technologies. We find that environmental regulation did affect the
diffusion of the cleaner technology in the chlorine industry. However, it did so not by encouraging
the adoption of membrane cells by existing facilities, but by reducing the demand for chlorine and
hence encouraging the shutdown of facilities using the environmentally inferior options.
Citation
Snyder, Lori, Nolan Miller, and Robert N. Stavins. "The Effects of Environmental Regulation on Technology Diffusion: The Case of Chlorine Manufacturing." KSG Faculty Research Working Paper Series RWP03-014, January 2003.