An empirical study of income growth and manufacturing industry pollution in New England, 1980-1990
This paper is an empirical examination of how a community's income growth is affected by polluting manufacturing activity. The hypothesis I test is that this activity has two conflicting effects: first, industrial investment encourages economic growth through the creation of employment and other positive economic spillover effects and, second, the associated pollution causes out-migration of residents. I hypothesize that a community that is initially relatively wealthy will experience relatively more out-migration of its higher income residents, who are assumed to have a lower tolerance for pollution. Thus, such communities will grow less in response to such investment compared to its poorer neighbors. Therefore, in my econometric model the marginal effect of pollution on income growth is allowed to vary with initial incomes. I use a unique data set that incorporates Toxics Release Inventory (TRI) and census tract-level data for New England for the years 1980 and 1990. The estimated effect of pollution on growth is negative, on average, and is more negative in initial incomes. In an effort to measure the out-migration effects of pollution, I use a separate measure of toxic pollution. I find that, holding constant total pollution, 'toxic' pollution has a more negative effect on growth for wealthier communities. These results are consistent with the above hypotheses.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gawande, Kishore & Bohara, Alok K. & Berrens, Robert P. & Wang, Pingo, 2000. "Internal migration and the environmental Kuznets curve for US hazardous waste sites," Ecological Economics, Elsevier, vol. 33(1), pages 151-166, April.
- John, A. & Pecchenino, R. & Schimmelpfennig, D. & Schreft, S., 1995. "Short-lived agents and the long-lived environment," Journal of Public Economics, Elsevier, vol. 58(1), pages 127-141, September.
- List, John A. & Gallet, Craig A., 1999. "The environmental Kuznets curve: does one size fit all?," Ecological Economics, Elsevier, vol. 31(3), pages 409-423, December.
- Rothman, Dale S., 1998. "Environmental Kuznets curves--real progress or passing the buck?: A case for consumption-based approaches," Ecological Economics, Elsevier, vol. 25(2), pages 177-194, May.
- Roca, Jordi, 2003. "Do individual preferences explain the Environmental Kuznets curve?," Ecological Economics, Elsevier, vol. 45(1), pages 3-10, April.
- CARSON, RICHARd T. & JEON, YONGIL & McCUBBIN, DONALD R., 1997. "The relationship between air pollution emissions and income: US Data," Environment and Development Economics, Cambridge University Press, vol. 2(04), pages 433-450, November.
- Susmita Dasgupta & Benoit Laplante & Hua Wang & David Wheeler, 2002. "Confronting the Environmental Kuznets Curve," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 147-168, Winter.
- David I. Stern, 2003.
"The Rise and Fall of the Environmental Kuznets Curve,"
Rensselaer Working Papers in Economics
0302, Rensselaer Polytechnic Institute, Department of Economics.
- Stern, David I., 2004. "The Rise and Fall of the Environmental Kuznets Curve," World Development, Elsevier, vol. 32(8), pages 1419-1439, August.
- Khanna, Neha & Plassmann, Florenz, 2004. "The demand for environmental quality and the environmental Kuznets Curve hypothesis," Ecological Economics, Elsevier, vol. 51(3-4), pages 225-236, December.
- Coondoo, Dipankor & Dinda, Soumyananda, 2002. "Causality between income and emission: a country group-specific econometric analysis," Ecological Economics, Elsevier, vol. 40(3), pages 351-367, March.
- Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
- Stern , David I., 1998. "Progress on the environmental Kuznets curve?," Environment and Development Economics, Cambridge University Press, vol. 3(02), pages 173-196, May.
- Gawande, Kishore & Berrens, Robert P. & Bohara, Alok K., 2001. "A consumption-based theory of the environmental Kuznets curve," Ecological Economics, Elsevier, vol. 37(1), pages 101-112, April.
- Hanna, Brid Gleeson, 2007. "House values, incomes, and industrial pollution," Journal of Environmental Economics and Management, Elsevier, vol. 54(1), pages 100-112, July.
- Kahn, Matthew E., 1997. "Particulate pollution trends in the United States," Regional Science and Urban Economics, Elsevier, vol. 27(1), pages 87-107, February.
When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:67:y:2008:i:1:p:75-82. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.