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Neighborhood Demographics and the Distribution of Hazardous Waste Risks: An Instrumental Variables Estimation

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  • Gayer, Ted

Abstract

This paper examines whether the marginal price of risk reduction varies by the demographic characteristics of neighborhoods. Using an instrumental-variables approach to control for the two-way relationship between housing prices and environmental risk, the paper finds that the marginal valuation of risk reduction is higher in high-education and high-income neighborhoods. The results also suggest that environmental risks are greater in neighborhoods with low-priced houses and in neighborhoods with low levels of collective action, suggesting that polluters consider these characteristics when making their siting decisions. Copyright 2000 by Kluwer Academic Publishers

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  • Gayer, Ted, 2000. "Neighborhood Demographics and the Distribution of Hazardous Waste Risks: An Instrumental Variables Estimation," Journal of Regulatory Economics, Springer, vol. 17(2), pages 131-155, March.
    • Handle: RePEc:kap:regeco:v:17:y:2000:i:2:p:131-55
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    Cited by:

    1. Katrin Rehdanz, 2002. "Hedonic Pricing Of Climate Change Impacts To Households In Great Britain," Working Papers FNU-13, Research unit Sustainability and Global Change, Hamburg University, revised Jul 2002.
    2. Fink, Alexander & Stratmann, Thomas, 2015. "U.S. housing prices and the Fukushima nuclear accident," Journal of Economic Behavior & Organization, Elsevier, vol. 117(C), pages 309-326.
    3. Robin R. Jenkins & Kelly B. Maguire & Cynthia L. Morgan, 2004. "Host Community Compensation and Municipal Solid Waste Landfills," Land Economics, University of Wisconsin Press, vol. 80(4).
    4. Trudy Ann Cameron & Ian T. McConnaha, 2006. "Evidence of Environmental Migration," Land Economics, University of Wisconsin Press, vol. 82(2), pages 273-290.
    5. Alexander Fink & Thomas Stratmann, 2013. "U.S. housing prices and the Fukushima nuclear accident: To update, or not to update, that is the question," ICER Working Papers 04-2013, ICER - International Centre for Economic Research.
    6. Seung Kyum Kim & Longfeng Wu, 2022. "Do the characteristics of new green space contribute to gentrification?," Urban Studies, Urban Studies Journal Limited, vol. 59(2), pages 360-380, February.
    7. Don Fullerton, 2008. "Distributional Effects of Environmental and Energy Policy: An Introduction," NBER Working Papers 14241, National Bureau of Economic Research, Inc.
    8. Antonis Adam & Sofia Tsarsitalidou, 2019. "Environmental policy efficiency: measurement and determinants," Economics of Governance, Springer, vol. 20(1), pages 1-22, March.
    9. Chau‐Sa Ho & Diane Hite, 2008. "The benefit of environmental improvement in the southeastern United States: Evidence from a simultaneous model of cancer mortality, toxic chemical releases and house values," Papers in Regional Science, Wiley Blackwell, vol. 87(4), pages 589-604, November.
    10. Brasington, David M., 2002. "Edge versus center: finding common ground in the capitalization debate," Journal of Urban Economics, Elsevier, vol. 52(3), pages 524-541, November.

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