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Pollution abatement and environmental equity: A dynamic study

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  • Baryshnikova, Nadezhda V.

Abstract

We 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 Info

Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 68 (2010)
Issue (Month): 2 (September)
Pages: 183-190

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Handle: RePEc:eee:juecon:v:68:y:2010:i:2:p:183-190

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Web page: http://www.elsevier.com/locate/inca/622905

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Keywords: Pollution abatement Environmental equity Demographic composition Dynamic panel Instrumental variable;

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  1. Brooks, Nancy & Sethi, Rajiv, 1997. "The Distribution of Pollution: Community Characteristics and Exposure to Air Toxics," Journal of Environmental Economics and Management, Elsevier, vol. 32(2), pages 233-250, February.
  2. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  3. James T. Hamilton, 1995. "Testing for environmental racism: Prejudice, profits, political power?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 14(1), pages 107-132.
  4. Gray, Wayne B. & Shadbegian, R.J.Ronald J., 2004. "'Optimal' pollution abatement--whose benefits matter, and how much?," Journal of Environmental Economics and Management, Elsevier, vol. 47(3), pages 510-534, May.
  5. Manuel Pastor & James L. Sadd & Rachel Morello-Frosch, 2004. "Waiting to Inhale: The Demographics of Toxic Air Release Facilities in 21st-Century California," Social Science Quarterly, Southwestern Social Science Association, Southwestern Social Science Association, vol. 85(2), pages 420-440.
  6. Douglas Anderton & Andy Anderson & John Oakes & Michael Fraser, 1994. "Environmental Equity: The Demographics of Dumping," Demography, Springer, Springer, vol. 31(2), pages 229-248, May.
  7. Evan J. Ringquist, 2005. "Assessing evidence of environmental inequities: A meta-analysis," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 24(2), pages 223-247.
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