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

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Author Info
Randy A. Becker (U.S. Bureau of the Census)

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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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File URL: http://www.bepress.com/cgi/viewcontent.cgi?article=1231&context=bejeap
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Publisher Info
Article provided by Berkeley Electronic Press in its journal The B.E. Journal of Economic Analysis & Policy.

Volume (Year): contributions.3 (2004)
Issue (Month): 2 ()
Pages:
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Handle: RePEc:bpj:bejeap:v:contributions.3:y:2004:i:2:n:6

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Web page: http://www.bepress.com/bejeap

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Related research
Keywords: environmental regulation; costs; air pollution abatement; community characteristics; manufacturing;

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Find related papers by JEL classification:
Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Costs; Distributional Effects; Employment Effects
Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
L6 - Industrial Organization - - Industry Studies: Manufacturing

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. 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. [Downloadable!]
  2. 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. [Downloadable!] (restricted)
  3. 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.
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  4. Henderson, J Vernon, 1996. "Effects of Air Quality Regulation," American Economic Review, American Economic Association, vol. 86(4), pages 789-813, September. [Downloadable!] (restricted)
    Other versions:
  5. Kahn, Matthew E., 1997. "Particulate pollution trends in the United States," Regional Science and Urban Economics, Elsevier, vol. 27(1), pages 87-107, February. [Downloadable!] (restricted)
  6. 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. [Downloadable!]
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  7. Arik Levinson, 2001. "An Industry-Adjusted Index of State Environmental Compliance Costs," NBER Chapters, in: Behavioral and Distributional Effects of Environmental Policy, pages 131-158 National Bureau of Economic Research, Inc. [Downloadable!]
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  8. Carlo Carraro & Gilbert E. Metcalf, 2000. "Behavioral and Distributional Effects of Environmental Policy: Introduction," Discussion Papers Series, Department of Economics, Tufts University 0011, Department of Economics, Tufts University. [Downloadable!]
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  9. 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. [Downloadable!] (restricted)
  10. Kahn, Matthew E & Matsusaka, John G, 1997. "Demand for Environmental Goods: Evidence from Voting Patterns on California Initiatives," Journal of Law & Economics, University of Chicago Press, vol. 40(1), pages 137-73, April.
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  11. 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. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. 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. [Downloadable!]
    Other versions:
  2. Ronald Shadbegian & Randy Becker, 2004. "A Change of PACE: Comparing the 1994 and 1999 Pollution Abatement Costs and Expenditures Surveys," Working Papers 04-09, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
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