Optimal Pollution Abatement - Whose Benefits Matter, and How Much?

41 Pages Posted: 30 Aug 2002 Last revised: 9 Dec 2022

See all articles by Wayne B. Gray

Wayne B. Gray

Clark University - Department of Economics; National Bureau of Economic Research (NBER)

Ronald J. Shadbegian

University of Massachusetts at Dartmouth; U.S. Environmental Protection Agency (EPA)

Date Written: August 2002

Abstract

We examine measures of environmental regulatory activity (inspections and enforcement actions) and levels of air and water pollution at approximately 300 U.S. pulp and paper mills, using data for 1985-1997. We find that levels of air and water pollution emissions are affected both by the benefits from pollution abatement and by the characteristics of the people exposed to the pollution. The results suggest substantial differences in the weights assigned to different types of people: the benefits received by out-of-state people seem to count only half as much as benefits received in-state, although their weight increases if the bordering state's Congressional delegation is strongly pro-environment. Some variables are also associated with greater regulatory activity being directed towards the plant, but those results are less consistent with our hypotheses than the pollution emissions results. One set of results was consistently contrary to expectations: plants with more nonwhites nearby emit less pollution. Some of our results might be due to endogenous sorting of people based on pollution levels, but an attempt to examine this using the local population turnover rate found evidence of sorting for only one of four pollutants.

Suggested Citation

Gray, Wayne B. and Shadbegian, Ronald J., Optimal Pollution Abatement - Whose Benefits Matter, and How Much? (August 2002). NBER Working Paper No. w9125, Available at SSRN: https://ssrn.com/abstract=327151

Wayne B. Gray (Contact Author)

Clark University - Department of Economics ( email )

950 Main Street
Worcester, MA 01610
United States
708-793-7693 (Phone)
708-793-8849 (Fax)

National Bureau of Economic Research (NBER)

Ronald J. Shadbegian

University of Massachusetts at Dartmouth ( email )

North Dartmouth, MA 02747
United States

U.S. Environmental Protection Agency (EPA) ( email )

Ariel Rios Building
1200 Pennsylvania Ave., N.W.
Washington, DC 20460
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
65
Abstract Views
1,875
Rank
617,745
PlumX Metrics