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Where Is Pollution Moving? Environmental Markets and Environmental Justice

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  • Joseph S. Shapiro
  • Reed Walker

Abstract

Do US air pollution offset markets disproportionately relocate pollution to or from low-income or minority communities? Concerns about an equal distribution of environmental quality across communities—environmental justice—have growing policy influence. We relate prices and quantities of offset transactions to the demographics of the communities surrounding polluting plants. We find little association of offset prices or offset-induced movements in pollution with the share of a community that is Black or Hispanic or with mean household income. This analysis of 12 prominent offset markets suggests that they do not substantially increase or decrease the equity of environmental outcomes.

Suggested Citation

  • Joseph S. Shapiro & Reed Walker, 2021. "Where Is Pollution Moving? Environmental Markets and Environmental Justice," AEA Papers and Proceedings, American Economic Association, vol. 111, pages 410-414, May.
    • Handle: RePEc:aea:apandp:v:111:y:2021:p:410-14
    DOI: 10.1257/pandp.20211004
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    Cited by:

    1. Carolyn Fischer & Grant D. Jacobsen, 2021. "The Green New Deal And The Future Of Carbon Pricing," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 40(3), pages 988-995, June.
    2. Kalinin, Alexey V. & Sims, Katharine R.E. & Meyer, Spencer R. & Thompson, Jonathan R., 2023. "Does land conservation raise property taxes? Evidence from New England cities and towns," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).
    3. Hernandez-Cortes, Danae & Meng, Kyle C., 2023. "Do environmental markets cause environmental injustice? Evidence from California’s carbon market," Journal of Public Economics, Elsevier, vol. 217(C).
    4. Lucas Cain & Danae Hernandez-Cortes & Christopher Timmins & Paige Weber, 2023. "Recent Findings and Methodologies in Economics Research in Environmental Justice," CESifo Working Paper Series 10283, CESifo.

    More about this item

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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