Co-Location of Carbon Management Projects with Pollution-Intensive Manufacturing: Evidence from Us Zip Codes

Abstract

This study examines the co-location of Carbon Management Projects (CMPs) with pollution-intensive manufacturing facilities across 20,086 US zip codes using Probit regression models. Results show that the presence of such industrial facilities significantly increases the likelihood of hosting CMPs. Zip codes with higher pollution levels and increasing trends of pollution releases have a higher probability of co-hosting CMPs, whereas densely populated areas are less likely. Additionally, declining trends in energy recovery is correlated with higher probability of co-hosting a CMP, possibly indicating a substitution relationship between the two, while increasing waste treatment correlates with CMP presence, indicating potential synergies with other waste management activities. The findings emphasize the role of pollution-intensive industrial hubs in affecting CMP location decisions, informing targeted environmental policies.

Keywords: Toxic Release Inventory (TRI), CCS, industrial hubs, EPA, carbon emissions