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Environmental Compliance Costs and the Distribution of Emissions in the U.S

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  • David L. Millimet
  • Daniel Slottje

Abstract

Using the properties of the Gini coefficient, a structural model is developed to assess the impact of uniform changes in environmental compliance costs on the distribution of per capita emissions across U.S. counties and states, a distribution that places a larger burden on minorities. Using data from the U.S. EPA’s Toxic Release Inventory and three state‐specific measures of environmental compliance costs, we find that uniform increases in federal environmental standards have little impact on the distribution of environmental hazards, and may actually exacerbate spatial inequality. As a result, Federal standards that target specific high pollution locations are necessary to redress current inequities.

Suggested Citation

  • David L. Millimet & Daniel Slottje, 2002. "Environmental Compliance Costs and the Distribution of Emissions in the U.S," Journal of Regional Science, Wiley Blackwell, vol. 42(1), pages 87-105, February.
    • Handle: RePEc:bla:jregsc:v:42:y:2002:i:1:p:87-105
    DOI: 10.1111/1467-9787.00251
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    Cited by:

    1. Daniel L. Millimet & John A. List, 2003. "A Natural Experiment on the ‘Race to the Bottom’ Hypothesis: Testing for Stochastic Dominance in Temporal Pollution Trends," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(4), pages 395-420, September.
    2. Kelly Maguire & Glenn Sheriff, 2011. "Comparing Distributions of Environmental Outcomes for Regulatory Environmental Justice Analysis," IJERPH, MDPI, vol. 8(5), pages 1-20, May.
    3. Daniel Millimet & Daniel Slottje, 2003. "Industrial and environmental specialization," Applied Economics Letters, Taylor & Francis Journals, vol. 10(3), pages 123-128.
    4. Fredriksson, Per G. & List, John A. & Millimet, Daniel L., 2004. "Chasing the smokestack: strategic policymaking with multiple instruments," Regional Science and Urban Economics, Elsevier, vol. 34(4), pages 387-410, July.
    5. Daniel L. Millimet, 2003. "Environmental Abatement Costs and Establishment Size," Contemporary Economic Policy, Western Economic Association International, vol. 21(3), pages 281-296, July.
    6. Chen, Jiandong & Cheng, Shulei & Song, Malin, 2017. "Decomposing inequality in energy-related CO2 emissions by source and source increment: The roles of production and residential consumption," Energy Policy, Elsevier, vol. 107(C), pages 698-710.
    7. Bouvier, Rachel, 2014. "Distribution of income and toxic emissions in Maine, United States: Inequality in two dimensions," Ecological Economics, Elsevier, vol. 102(C), pages 39-47.
    8. Esfandiar Maasoumi & Daniel L. Millimet, 2005. "Robust inference concerning recent trends in US environmental quality," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 55-77, January.

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