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Community Pressure and the Spatial Redistribution of Pollution: The Relocation of Toxic-Releasing Facilities

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  • Xiao Wang
  • George Deltas
  • Madhu Khanna
  • Xiang Bi

Abstract

This paper analyzes the effects of community pressure on the relocation of toxic-releasing facilities by using the public disclosure of toxic release information through the Toxics Release Inventory (TRI) as a natural experiment. We find that facilities are more likely to relocate from communities with high population density, income, and educational attainment, whereas low wages, rent, and transportation amenities deter relocation. Facilities with emissions below reporting thresholds but expectations of emissions growth are more likely to relocate in anticipation of their inclusion in the TRI. Relocating facilities tend to move into communities with lower population density, income, and educational attainment, and this pattern is stronger for facilities whose scale of operations and emissions grows the most post-relocation. The spatial pattern of facility relocation provides indirect evidence that environmental information disclosure may unintentionally worsen environmental injustice because of differential effects of community pressure.

Suggested Citation

  • Xiao Wang & George Deltas & Madhu Khanna & Xiang Bi, 2021. "Community Pressure and the Spatial Redistribution of Pollution: The Relocation of Toxic-Releasing Facilities," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 8(3), pages 577-616.
    • Handle: RePEc:ucp:jaerec:doi:10.1086/711656
    DOI: 10.1086/711656
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    Cited by:

    1. Wang, Yangjie & Zang, Shoujuan & Qiang, Hongjie & Wang, Jinxian, 2023. "Air pollution disclosing and tourism: Who are winners?," Annals of Tourism Research, Elsevier, vol. 103(C).
    2. Lucas Cain & Danae Hernandez-Cortes & Christopher Timmins & Paige Weber, 2023. "Recent Findings and Methodologies in Economics Research in Environmental Justice," CESifo Working Paper Series 10283, CESifo.
    3. Magnus Schauf & Eline Schoonjans, 2022. "Better Safe than Sorry: Toxic Waste Management after Unionization," Working Papers 220, Bavarian Graduate Program in Economics (BGPE).
    4. Ding, Jinxiu & Lu, Zhe & Yu, Chin-Hsien, 2022. "Environmental information disclosure and firms’ green innovation: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 81(C), pages 147-159.
    5. Earnhart, Dietrich & Germeshausen, Robert & von Graevenitz, Kathrine, 2022. "Effects of information-based regulation on financial outcomes: Evidence from the European Union's public emission registry," ZEW Discussion Papers 22-015, ZEW - Leibniz Centre for European Economic Research.
    6. Linh Pham & Travis Roach, 2024. "Spillover benefits of carbon dioxide cap and trade: Evidence from the Toxics Release Inventory," Economic Inquiry, Western Economic Association International, vol. 62(1), pages 449-467, January.

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