Maasoumi, Esfandiar () (Department of Economics, Southern Methodist University, Dallas, TX 75275-0496, USA) Daniel L. Millimet () (Department of Economics, Southern Methodist University, Dallas, TX 75275-0496, USA)
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The distribution of pollution is of just as much concern as the level of pollution, particularly if the areas located in the upper tail of the distribution are not randomly assigned. The literature on ‘environmental discrimination’ typically finds that even conditional on various locational attributes, areas concentrated with minorities experience higher mean pollution levels. However, claims of environmental discrimination based upon only the first moment of a conditional (or unconditional) distribution may be narrow and disregard the remainder of the distribution and more informative welfare evaluations. This shortcoming is addressed by adapting recent developments in the stochastic dominance literature to test for unambiguous rankings between various distributions of toxic releases. Using county-level data from the EPA from 1990 – 1999, we find ...
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Paper provided by Southern Methodist University, Department of Economics in its series Departmental Working Papers with number
0510.