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The Environmental Performance Of Polluting Plants: A Spatial Analysis

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  • Wayne B. Gray
  • Ronald J. Shadbegian

Abstract

This paper uses plant-level EPA and Census data to examine spatial factors affecting environmental performance, as measured by air pollutant emissions and regulatory compliance. We find significant effects for compliance, but not for emissions. Compliance is positively spatially correlated, partly explained by spatial correlations in observed plant characteristics, suggesting influences of industry agglomeration. The use of spatial econometric methods shows only small effects of spatially lagged compliance status, and does not greatly change the estimated contributions of other spatially explicit factors. Regulatory activity has the expected effect of increasing environmental performance, both at the inspected plant and at neighboring plants, but only for plants in the same state, demonstrating the importance of jurisdictional boundaries. Copyright Blackwell Publishing, Inc. 2007

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9787.2007.00500.x
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Article provided by Wiley Blackwell in its journal Journal of Regional Science.

Volume (Year): 47 (2007)
Issue (Month): 1 ()
Pages: 63-84

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Handle: RePEc:bla:jregsc:v:47:y:2007:i:1:p:63-84
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  1. Hilary Sigman, 2001. "International Spillovers and Water Quality in Rivers: Do Countries Free Ride?," NBER Working Papers 8585, National Bureau of Economic Research, Inc.
  2. 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.
  3. Wayne B. Gray & Ronald J. Shadbegian, 2002. "‘Optimal’ Pollution Abatement – Whose Benefits Matter, and How Much?," NCEE Working Paper Series 200205, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Sep 2002.
  4. Charles F. Manski, 2000. "Economic Analysis of Social Interactions," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 115-136, Summer.
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  8. Helland, Eric & Whitford, Andrew B., 2003. "Pollution incidence and political jurisdiction: evidence from the TRI," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 403-424, November.
  9. 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.
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  13. Scholz, John T & Gray, Wayne B, 1990. " OSHA Enforcement and Workplace Injuries: A Behavioral Approach to Risk Assessment," Journal of Risk and Uncertainty, Springer, vol. 3(3), pages 283-305, September.
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  16. Hilary Sigman, 2004. "Transboundary Spillovers and Decentralization of Environmental Policies," NBER Working Papers 10717, National Bureau of Economic Research, Inc.
  17. Robert H Mcguckin & George A Pascoe, 1988. "The Longitudinal Research Database (LRD): Status And Research Possibilities," Working Papers 88-2, Center for Economic Studies, U.S. Census Bureau.
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Cited by:

  1. Claudia Ghisetti & Francesco Quatraro, 2013. "Beyond the Inducement in Climate Change: Do Environmental Performances Spur Enrivornmental Technologies? A Regional Analysis of Cross-Sectoral Differences," Working Papers 2013112, University of Ferrara, Department of Economics.
  2. Millimet, Daniel L., 2013. "Environmental Federalism: A Survey of the Empirical Literature," IZA Discussion Papers 7831, Institute for the Study of Labor (IZA).
  3. Kjetil Telle, 2012. "Monitoring and enforcement of environmental regulations. Lessons from a natural field experiment in Norway," Discussion Papers 680, Research Department of Statistics Norway.
  4. Claudia Ghisetti & Francesco Quatraro, 2013. "Beyond inducement in climate change: Does environmental performance spur environmental technologies?," Post-Print hal-00860045, HAL.
  5. repec:hal:wpaper:hal-00860045 is not listed on IDEAS
  6. Valeria Costantini & Francesco Crespi & Alessandro Palma, 2014. "Policy Inducement Effects in Energy Efficiency Technologies. An Empirical Analysis on the Residential Sector," SEEDS Working Papers 1914, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Aug 2014.
  7. Lirong Liu, 2012. "Analysis of Firm Compliance with Multiple Environmental Regulations," Working Papers 1207, Sam Houston State University, Department of Economics and International Business.
  8. Gonzalez, Fidel & Leipnik, Mark & Mazumder, Diya, 2013. "How much are urban residents in Mexico willing to pay for cleaner air?," Environment and Development Economics, Cambridge University Press, vol. 18(03), pages 354-379, June.
  9. Telle, Kjetil, 2013. "Monitoring and enforcement of environmental regulations," Journal of Public Economics, Elsevier, vol. 99(C), pages 24-34.
  10. Cole, Matthew A. & Elliott, Robert J.R. & Okubo, Toshihiro & Zhou, Ying, 2013. "The carbon dioxide emissions of firms: A spatial analysis," Journal of Environmental Economics and Management, Elsevier, vol. 65(2), pages 290-309.
  11. Wayne B. Gray & Jay P. Shimshack, 2011. "The Effectiveness of Environmental Monitoring and Enforcement: A Review of the Empirical Evidence," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 5(1), pages 3-24, Winter.
  12. Lirong Liu, 2013. "Analysis of Firm Compliance with Multiple Environmental regulations," Economics Bulletin, AccessEcon, vol. 33(3), pages 1695-1705.

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