Expert workshop on the creation and uses of combined environmental and economic performance datasets at the micro-level - 10-11 July 2018 - OECD, Paris

1. Overview Data Details Examples Final Thoughts
Canadian Environmental-Economic Micro-Data:
The NPRI-ASM Dataset
Jevan Cherniwchana Nouri Najjarb
aAlberta School of Business
University of Alberta
bIvey Business School
Western University
OECD, July 2018
Cherniwchan and Najjar Canadian Environmental-Economic Micro Data

2. Overview Data Details Examples Final Thoughts
Overview
1 New confidential dataset.
• Plant-level pollution emissions and production information.
2 Collaboration between academic and government partners.
3 Accessible at Statistics Canada’s head office in Ottawa.
Cherniwchan and Najjar Canadian Environmental-Economic Micro Data

3. Overview Data Details Examples Final Thoughts
Collaborators
Government:
• Statistics Canada.
• Environment and Climate Change Canada.
Academic:
• Environmental Economics and Policy Research Network (University of
Ottawa).
• Productivity Partnership (McMaster University).
Cherniwchan and Najjar Canadian Environmental-Economic Micro Data

4. Overview Data Details Examples Final Thoughts
Data Elements - Pollution
National Pollutant Release Inventory (NPRI).
• Plant-level releases by medium; upwards of 300 pollutants.
• Includes information on “Criteria Air Contaminants” (PM2.5, NOX,
SOX, VOCs, etc.)
• Coverage from 1994-Present.
• Self-reported; subject to legislative penalties.
• Reporting requirements based on thresholds: pollution and
employment.
• Publicly available.
Cherniwchan and Najjar Canadian Environmental-Economic Micro Data

5. Overview Data Details Examples Final Thoughts
Data Elements - Production
Annual Survey of Manufacturers (ASM)
• “Partial census” of manufacturing establishments.
• Cross sections of tiny establishments; panel of remaining.
• Information on: shipments ($), employment ($ & workers),
expenditures ($), exports ($), etc.
• Years: 1970s-2012.
• Subject to repeated revisions.
• Most recent wave: 2000-2012.
• Replaced by repeated cross-section in 2012.
• Confidential.
Cherniwchan and Najjar Canadian Environmental-Economic Micro Data

6. Overview Data Details Examples Final Thoughts
Data Creation
Statistics Canada matched plants across NPRI and ASM.
Linkages on firm business number, location (ie city/town), name.
• Multiple rounds; match on all 3, then pairs.
• Final round with manual matches.
Time frame: 2 years.
• First discussions: early 2014.
• Final match 2016.
Cherniwchan and Najjar Canadian Environmental-Economic Micro Data

7. Overview Data Details Examples Final Thoughts
Data Issues I
1 Linkage selection.
• Around 80% of plants successfully linked.
• Linkage success correlated with firm-size → selection.
• Biased treatment effect estimates if treatment correlated with size.
• Solution: weight by match probability.
2 Sample Selection/Censoring.
• NPRI threshold requirements; non-representative sample.
• Pollution: evidence for large emitters only.
• Employment: report CACs if operate generator/boiler on-site.
Cherniwchan and Najjar Canadian Environmental-Economic Micro Data

8. Overview Data Details Examples Final Thoughts
Data Issues II
3 Reporting requirements and sample-frame change over time.
4 Ends in 2012.
• ASM discontinued.
• Statistics Canada working on cross-walk with another survey.
5 Limited information on many plant outcomes.
• Could be alleviated via matching to other surveys.
Cherniwchan and Najjar Canadian Environmental-Economic Micro Data

9. Overview Data Details Examples Final Thoughts
Regulation and the Manufacturing Clean-Up
• Since 1990, manufacturing pollution intensity ↓ by over 40% in
industrialized countries.
• How does regulation clean up industry, and how important was it?
• Used NPRI-ASM to estimate regulation’s contribution to the clean-up
through:
1 Plant-level ∆ in pollution intensity.
2 Plant exit.
3 ∆ output at surviving plants.
• Matched micro-data: measure plant-level process ∆.
Cherniwchan and Najjar Canadian Environmental-Economic Micro Data

10. Overview Data Details Examples Final Thoughts
Environmental Regulation and the Pollution Haven Effect
• PHE: unilateral regulation may ↑ production costs for domestic firms
relative to foreign.
• But, do environmental regulations affect the decision to export and
how much? If so, for whom?
• Used NPRI-ASM to estimate the effect of environmental regulation
on plant exports.
• Matched micro-data: can identify which plants are affected by
policy.
Cherniwchan and Najjar Canadian Environmental-Economic Micro Data

11. Overview Data Details Examples Final Thoughts
Government Use of the NPRI-ASM
• The NPRI-ASM has also been used by the Canadian government.
• Incorporating environmental outcomes into multi-factor productivity
analysis.
• Estimating environmental and economic efficiency of manufacturing
plants.
• For information, contact Michael Willox (michael.willox@canada.ca).
Cherniwchan and Najjar Canadian Environmental-Economic Micro Data

12. Overview Data Details Examples Final Thoughts
Final Thoughts
1 Plants vs. Firms?
• Production (and pollution) occurs at plants, but firms make decisions.
• Many research questions may may blend both sides.
• Data, theoretical, and empirical challenges.
2 Multinationals and global production chains.
• Cross-country collaboration?
• New methods to study displacement?
3 Funding and data access.
• New data is costly; may require government buy-in.
• Access is costly.
Cherniwchan and Najjar Canadian Environmental-Economic Micro Data

13. Overview Data Details Examples Final Thoughts
Thank you
Cherniwchan and Najjar Canadian Environmental-Economic Micro Data