Pollution abatement and environmental equity: A dynamic study
AbstractWe study pollution abatement and environmental equity in a dynamic panel model using data for 234 plants in the US pulp and paper industry observed over the period 1985-1997. We suggest a theoretical model for the plant manager who incorporates regulatory pressure into his calculations of optimal amounts of pollution. Assuming actual pollution abatement exhibits a sluggish adjustment process, the theoretical model leads to an empirical AR(1) panel model. We estimate our model using GMM with both "temporally lagged" and "spatially lagged" instruments and find significant evidence supporting the partial adjustment model for both particulate matters less than 10 [mu]m and sulfur dioxide. We find some environmental inequity with respect to the children (under 6 years) and adults with no high school diploma. Our findings show no evidence of environmental inequity against African-Americans, Hispanics, other minority races, or the poor.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Urban Economics.
Volume (Year): 68 (2010)
Issue (Month): 2 (September)
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Web page: http://www.elsevier.com/locate/inca/622905
Pollution abatement Environmental equity Demographic composition Dynamic panel Instrumental variable;
Other versions of this item:
- Nadezhda V. Baryshnikova, 2010. "Pollution Abatement and Environmental Equity: A Dynamic Study," School of Economics Working Papers 2010-06, University of Adelaide, School of Economics.
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