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Pollution Abatement Expenditure by U.S. Manufacturing Plants: Do Community Characteristics Matter?

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  • Becker Randy A

    ()
    (U.S. Bureau of the Census)

Abstract

This paper examines whether community characteristics impact the air pollution abatement (APA) activity at nearby manufacturing plants, using establishment-level data from the U.S. Census Bureau’s Pollution Abatement Costs and Expenditures (PACE) survey. Controlling for facility characteristics and various forms of formal environmental regulation, certain community characteristics are found to have additional effects on local APA expenditures. In particular, for the most pollution-intensive industries, larger per capita income is found to increase plant-level APA activity, as is a higher degree of homeownership, a greater concentration of Democratic voters, and being located in a metropolitan area. Meanwhile, a greater presence of manufacturing employees is found to decrease APA expenditures, suggesting a constituency that is more resistant to additional regulation. If local populations can indeed affect pollution abatement activity, they can impact the spatial distribution of pollution, thereby creating pollution haven effects.

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Bibliographic Info

Article provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.

Volume (Year): 3 (2003)
Issue (Month): 2 (December)
Pages: 1-23

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Handle: RePEc:bpj:bejeap:v:contributions.3:y:2004:i:2:n:6

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  1. Kenneth Y. Chay & Michael Greenstone, 2005. "Does Air Quality Matter? Evidence from the Housing Market," Journal of Political Economy, University of Chicago Press, vol. 113(2), pages 376-424, April.
  2. Khan, M. & Matsusaka, J.G., 1995. "Demand for Environment Goods: Evidence from Voting Patterns on California Initiatives," Discussion Papers 1995_08, Columbia University, Department of Economics.
  3. Matthew E Kahn, 1997. "The Silver Lining Of Rust Belt Manufacturing Decline: Killing Off Pollution Externalities," Working Papers 97-7, Center for Economic Studies, U.S. Census Bureau.
  4. Arik Levinson, 1999. "An Industry-Adjusted Index of State Environmental Compliance Costs," Working Papers gueconwpa~00-00-08, Georgetown University, Department of Economics.
  5. Randy A. Becker & J. Vernon Henderson, 2001. "Costs of Air Quality Regulation," NBER Chapters, in: Behavioral and Distributional Effects of Environmental Policy, pages 159-186 National Bureau of Economic Research, Inc.
  6. James T. Hamilton, 1993. "Politics and Social Costs: Estimating the Impact of Collective Action on Hazardous Waste Facilities," RAND Journal of Economics, The RAND Corporation, vol. 24(1), pages 101-125, Spring.
  7. Henderson, J Vernon, 1996. "Effects of Air Quality Regulation," American Economic Review, American Economic Association, vol. 86(4), pages 789-813, September.
  8. Kahn, Matthew E., 1997. "Particulate pollution trends in the United States," Regional Science and Urban Economics, Elsevier, vol. 27(1), pages 87-107, February.
  9. William T. Harbaugh & Arik Levinson & David Molloy Wilson, 2002. "Reexamining The Empirical Evidence For An Environmental Kuznets Curve," The Review of Economics and Statistics, MIT Press, vol. 84(3), pages 541-551, August.
  10. Carlo Carraro & Gilbert E. Metcalf, 2000. "Behavioral and Distributional Effects of Environmental Policy Introduction," NBER Working Papers 7648, National Bureau of Economic Research, Inc.
  11. Gray, Wayne B. & Deily, Mary E., 1996. "Compliance and Enforcement: Air Pollution Regulation in the U.S. Steel Industry," Journal of Environmental Economics and Management, Elsevier, vol. 31(1), pages 96-111, July.
  12. James T. Hamilton, 1995. "Testing for environmental racism: Prejudice, profits, political power?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 14(1), pages 107-132.
  13. John A. List & W. Warren McHone, 2000. "Measuring the effects of air quality regulations on "dirty" firm births: Evidence from the neo- and mature-regulatory periods," Papers in Regional Science, Springer, vol. 79(2), pages 177-190.
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Cited by:
  1. Don Fullerton & Garth Heutel, 2010. "The General Equilibrium Incidence of Environmental Mandates," American Economic Journal: Economic Policy, American Economic Association, vol. 2(3), pages 64-89, August.
  2. Cole, Matthew A. & Elliott, Robert J.R. & Khemmarat, Khemrutai, 2013. "Local exposure to toxic releases: Examining the role of ethnic fractionalization and polarisation," Ecological Economics, Elsevier, vol. 93(C), pages 249-259.
  3. Jay P. Shimshack & Michael B. Ward, 2007. "Enforcement and Over-Compliance," Discussion Papers Series, Department of Economics, Tufts University 0706, Department of Economics, Tufts University.
  4. Harrington, Donna Ramirez, 2012. "Two-stage adoption of different types of pollution prevention (P2) activities," Resource and Energy Economics, Elsevier, vol. 34(3), pages 349-373.
  5. Donna Ramirez Harrington, 2013. "Effectiveness Of State Pollution Prevention Programs And Policies," Contemporary Economic Policy, Western Economic Association International, vol. 31(2), pages 255-278, 04.
  6. Markus Kitzmueller & Jay Shimshack, 2012. "Economic Perspectives on Corporate Social Responsibility," Journal of Economic Literature, American Economic Association, vol. 50(1), pages 51-84, March.
  7. Randy A. Becker & Ronald J. Shadbegian, 2004. "A Change of PACE: Comparing the 1994 and 1999 Pollution Abatement Costs and Expenditures Surveys," NCEE Working Paper Series 200408, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Jul 2004.
  8. Stefanie Haller & Liam Murphy, 2012. "Corporate Expenditure on Environmental Protection," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 51(2), pages 277-296, February.
  9. Cynthia Morgan & Ronald J. Shadbegian & Wayne B. Gray, 2005. "Benefits and Costs from Sulfur Dioxide Trading: A Distributional Analysis," NCEE Working Paper Series 200509, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Dec 2005.
  10. Becker, Randy A., 2011. "Local environmental regulation and plant-level productivity," Ecological Economics, Elsevier, vol. 70(12), pages 2516-2522.
  11. Khanna Madhu & Widyawati Diah, 2011. "Fostering Regulatory Compliance: The Role of Environmental Self-Auditing and Audit Policies," Review of Law & Economics, De Gruyter, vol. 7(1), pages 125-160, May.

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