Pollution Abatement Expenditure by U.S. Manufacturing Plants: Do Community Characteristics Matter?
A number of previous studies have demonstrated the impact of community characteristics on environmental outcomes such as local pollution levels and the siting of noxious facilities. If certain groups are indeed exposed to higher levels of air pollution, it may be due to a greater concentration of air polluters in those communities and/or facilities in those areas investing less in air pollution abatement. This paper examines the latter, using establishment-level data on manufacturing plants from the U.S. Census Bureauâ€™s Pollution Abatement Costs and Expenditures (PACE) survey. The empirical formulation herein allows plant-level air pollution abatement operating costs to depend on an array of community characteristics common to this literature. After controlling for establishment characteristics and federal, state, and local regulation, some of these local factors are found to have had an additional effect on air pollution abatement expenditures. In particular, populations with higher homeownership rates and higher per capita income enjoyed greater pollution abatement activity from their nearby plants. Meanwhile, establishments in communities where manufacturing accounted for a greater share of local employment had less pollution abatement spending, suggesting a local constituency that is more resistant to additional regulation. Political ideology is also found to play a role, with plants in areas with larger concentrations of Democrats having more expenditure on air pollution abatement, all else being equal. There is little evidence that race and ethnicity matter when it comes to the pollution abatement behavior of the most pollution-intensive facilities. The findings of this paper support those of a number of recent studies.
|Date of creation:||Nov 2003|
|Date of revision:|
|Contact details of provider:|| Postal: 4600 Silver Hill Road, Washington, DC 20233|
Phone: (301) 763-6460
Fax: (301) 763-5935
Web page: http://www.census.gov/ces
More information through EDIRC
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.:
- Randy A Becker & Vernon Henderson, 1999.
"Costs of Air Quality Regulation,"
99-9, Center for Economic Studies, U.S. Census Bureau.
- Matthew E Kahn, 1997. "The Silver Lining Of Rust Belt Manufacturing Decline: Killing Off Pollution Externalities," Working Papers 97-7, Center for Economic Studies, U.S. Census Bureau.
- Kahn, Matthew E., 1997. "Particulate pollution trends in the United States," Regional Science and Urban Economics, Elsevier, vol. 27(1), pages 87-107, February.
- Carlo Carraro & Gilbert E. Metcalf, 2000.
"Behavioral and Distributional Effects of Environmental Policy: Introduction,"
Discussion Papers Series, Department of Economics, Tufts University
0011, Department of Economics, Tufts University.
- Carlo Carraro & Gilbert E. Metcalf, 2000. "Behavioral and Distributional Effects of Environmental Policy Introduction," NBER Working Papers 7648, National Bureau of Economic Research, Inc.
- Vernon Henderson, 1995.
"Effects of Air Quality Regulation,"
NBER Working Papers
5118, National Bureau of Economic Research, Inc.
- 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.
- John A. List & W. Warren McHone, 2000. "Measuring the effects of air quality regulations on "dirty" firm births: Evidence from the neo- and mature-regulatory periods," Papers in Regional Science, Springer, vol. 79(2), pages 177-190.
- William Harbaugh & Arik Levinson & David Wilson, 2000.
"Reexamining the Empirical Evidence for an Environmental Kuznets Curve,"
NBER Working Papers
7711, National Bureau of Economic Research, Inc.
- William T. Harbaugh & Arik Levinson & David Molloy Wilson, 2002. "Reexamining The Empirical Evidence For An Environmental Kuznets Curve," The Review of Economics and Statistics, MIT Press, vol. 84(3), pages 541-551, August.
- William Harbaugh & Arik Levinson & David Wilson, 2000. "Reexamining the Empirical Evidence for an Environmental Kuznets Curve," Working Papers gueconwpa~00-00-07, Georgetown University, Department of Economics.
- Kahn, Matthew E & Matsusaka, John G, 1997. "Demand for Environmental Goods: Evidence from Voting Patterns on California Initiatives," Journal of Law and Economics, University of Chicago Press, vol. 40(1), pages 137-73, April.
- 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.
- Arik Levinson, 2001.
"An Industry-Adjusted Index of State Environmental Compliance Costs,"
in: Behavioral and Distributional Effects of Environmental Policy, pages 131-158
National Bureau of Economic Research, Inc.
- Arik Levinson, 1999. "An Industry-Adjusted Index of State Environmental Compliance Costs," NBER Working Papers 7297, National Bureau of Economic Research, Inc.
- Arik Levinson, 1999. "An Industry-Adjusted Index of State Environmental Compliance Costs," Working Papers gueconwpa~00-00-08, Georgetown University, Department of Economics.
- Kenneth Y. Chay & Michael Greenstone, 1998.
"Does Air Quality Matter? Evidence from the Housing Market,"
NBER Working Papers
6826, National Bureau of Economic Research, Inc.
- Kenneth Y. Chay & Michael Greenstone, 2005. "Does Air Quality Matter? Evidence from the Housing Market," Journal of Political Economy, University of Chicago Press, vol. 113(2), pages 376-424, April.
- James T. Hamilton, 1995. "Testing for environmental racism: Prejudice, profits, political power?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 14(1), pages 107-132.
When requesting a correction, please mention this item's handle: RePEc:cen:wpaper:03-18. 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: (Fariha Kamal)
If references are entirely missing, you can add them using this form.