Air pollution in California: Manufacturing vs. services

Relative to manufacturing, service activities are often considered by planners and officials to generate considerably less environmental pollution. This hypothesis is tested by means of an examination of the economic linkages of both manufacturing and service activities and of the resulting direct and indirect emissions of five air pollutants per dollar of output in the California statewide air basin and in four regional basins within the state. Overall acceptance or rejection of the hypothesis depends in part on the particular pollutant and air basin considered but, most importantly, on the judgement as to what activities are to be considered as service activities.This paper is based on research sponsored by the California Air Resources Board under Agreement A7-143-30.