fixed effects and is robust to instrumenting urbanization. Province’s competition, urban amenities and dis-amenities, cost … capita account for 40 percent of the negative urbanization penalty. Our result cannot be explained by the presence of … markets, young entrepreneurs are able to reap-off the benefits of urbanization externalities: every 100,000-inhabitant …

, environmental regulation, productivity, and consumer preferences have contributed to these reductions in pollution emissions. We … estimate the model's key parameters using administrative data on plant-level production and pollution decisions. We then … pollution changes. Finally, we compare the model-driven decomposition to a statistical decomposition. The model and data suggest …