FULLERTON : Clean-Air Costs for Firms Focus of Study

Cal State Fullerton’s Institute for Economic and Environmental Studies is studying the controversial question of how air pollution regulations affect California businesses economically.

The study is being financed by a $194,723 grant from the State Air Resources Board.

“For the last three to five years, the Air Quality Management District and Air Resources Board have been under criticism that their regulations are hurting business,” said Anil K. Puri, co-director of the institute and head of the new study.

“This study will make an assessment of what it costs California to meet its air quality regulations and the significance of these costs in business decisions as far as the location of plants and expansion,” Puri said.

Questions to be answered include whether air quality regulations cause the loss of jobs and taxes and the exodus of businesses from California, he said.

“Clearly, asking the firms whether air regulations have hurt them and whether they are a factor in their location decision will surely produce a predictable response,” Puri said. “Instead, we propose to ask firms rather detailed questions to help us identify specific ways in which they are affected by air quality regulations.

“Regulations affect different firms in different ways, depending on their individual competitive strategies,” he said. “We would try to identify some of these issues and then tie these findings to location decisions.”

Results of the study are expected to be made public by late 1994.