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A Random Utility Model of Environmental Equity

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  • Diane Hite

Abstract

Past attempts to uncover evidence that economically disadvantaged groups are unjustly exposed to environmental disamenities have failed to take into account self-selection behavior of individuals or groups of individuals. For instance, when choosing a place to live, households may be trading environmental quality for other housing, neighborhood, and location characteristics they care about. Previous literature on environmental justice has investigated location choice of polluting industries, but fails to account for consumer self-selection in housing markets. This paper thus focuses on location choice of individuals based on observed housing transactions. From the results of a random utility model, a test is proposed that incorporates the no-envy concept of economic equity. The results support a finding for environmental discrimination with respect to African American households, but do not support the hypothesis that poor households in general are unfairly exposed to environmental disamenities. Copyright 2000 Gatton College of Business and Economics, University of Kentucky.

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Bibliographic Info

Article provided by Gatton College of Business and Economics, University of Kentucky in its journal Growth and Change.

Volume (Year): 31 (2000)
Issue (Month): 1 ()
Pages: 40-58

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Handle: RePEc:bla:growch:v:31:y:2000:i:1:p:40-58

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Cited by:
  1. Don Fullerton, 2008. "Distributional Effects of Environmental and Energy Policy: An Introduction," NBER Working Papers 14241, National Bureau of Economic Research, Inc.
  2. Randy Becker, 2001. "Air Pollution Abatement Costs Under the Clean Air Act: Evidence from the PACE Survey," Working Papers 01-12, Center for Economic Studies, U.S. Census Bureau.
  3. Baden, Brett M. & Coursey, Don L., 2002. "The locality of waste sites within the city of Chicago: a demographic, social, and economic analysis," Resource and Energy Economics, Elsevier, vol. 24(1-2), pages 53-93, February.
  4. Abdul-Mohsen, Ashraf & Hitzhusen, Frederick J., 2006. "Environmental Injustice: An Ohio Case Study," 2006 Annual meeting, July 23-26, Long Beach, CA 21061, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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