IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwiee/ieep1.html
   My bibliography  Save this paper

Informal environmental regulation of industrial air pollution: Does neighborhood inequality matter?

Author

Listed:
  • Klara Zwickl

    () (Vienna University of Economics and Business, Welthandelsplatz 1, 1020 Vienna, Austria)

  • Mathias Moser

    () (Vienna University of Economics and Business, Welthandelsplatz 1, 1020 Vienna, Austria)

Abstract

This paper analyzes if neighborhood income inequality has an effect on informal regulation of environmental quality, using census tract{level data on industrial air pollution exposure from EPA's Risk Screening En- vironmental Indicators and income and demographic variables from the American Community Survey and EPA's Smart Location Database. Estimating a spatial lag model and controlling for formal regulation at the states level, wend evidence that overall neighborhood inequality - as measured by the ratio between the fourth and the second income quintile or the neighborhood Gini coefficient - increases local air pollution exposure, whereas a concentration of top incomes reduces local exposure. The positive coefficient of the general inequality measure is driven by urban neighborhoods, whereas the negative coefficient of top incomes is stronger in rural areas. We explain these findings by two contradicting effects of inequality: On the one hand, overall inequality reduces collective action and thus the organizing capacities for environmental improvements. On the other hand, a concentration of income at the top enhances the ability of rich residents to negotiate with regulators or polluting plants in their vicinity.

Suggested Citation

  • Klara Zwickl & Mathias Moser, 2014. "Informal environmental regulation of industrial air pollution: Does neighborhood inequality matter?," Ecological Economics Papers ieep1, Institute of Ecological Economics.
  • Handle: RePEc:wiw:wiwiee:ieep1
    Note: PDF-Document
    as

    Download full text from publisher

    File URL: http://epub.wu.ac.at/4420/1/EcolEcon_WorkingPaper_2015_1.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Alberto Alesina & Eliana La Ferrara, 2000. "Participation in Heterogeneous Communities," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 847-904.
    2. Alesina, Alberto & La Ferrara, Eliana, 2002. "Who trusts others?," Journal of Public Economics, Elsevier, vol. 85(2), pages 207-234, August.
    3. repec:aph:ajpbhl:10.2105/ajph.2011.300174_0 is not listed on IDEAS
    4. Douglas Anderton & Andy Anderson & John Oakes & Michael Fraser, 1994. "Environmental Equity: The Demographics of Dumping," Demography, Springer;Population Association of America (PAA), vol. 31(2), pages 229-248, May.
    5. Alberto Alesina & Reza Baqir & William Easterly, 1999. "Public Goods and Ethnic Divisions," The Quarterly Journal of Economics, Oxford University Press, vol. 114(4), pages 1243-1284.
    6. Bengi Akbulut & Ceren Soylu, 2012. "An inquiry into power and participatory natural resource management," Cambridge Journal of Economics, Oxford University Press, vol. 36(5), pages 1143-1162.
    7. Anselin, Luc, 2002. "Under the hood : Issues in the specification and interpretation of spatial regression models," Agricultural Economics, Blackwell, vol. 27(3), pages 247-267, November.
    8. Lisa Anderson & Jennifer Mellor & Jeffrey Milyo, 2006. "Induced heterogeneity in trust experiments," Experimental Economics, Springer;Economic Science Association, vol. 9(3), pages 223-235, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Boyce, James K. & Zwickl, Klara & Ash, Michael, 2016. "Measuring environmental inequality," Ecological Economics, Elsevier, vol. 124(C), pages 114-123.

    More about this item

    Keywords

    Informal Regulation; Income Inequality; Collective Action; Industrial Air Pollution Disparities; Risk-Screening Environmental Indicators; Spatial Lag Model;

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • H4 - Public Economics - - Publicly Provided Goods
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwiee:ieep1. 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: (Karin Lagger). General contact details of provider: http://www.wu.ac.at/ecolecon/ .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.