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Pollution Abatement and Environmental Equity: A Dynamic Study

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  • Nadezhda V. Baryshnikova

    (School of Economics, University of Adelaide)

Abstract

We study pollution abatement and environmental equity in a dynamic panel model using data for 236 plants in the US pulp and paper industry observed over the period 1985-1997. We suggest a theoretical model for the plant manager who incorporates regulatory pressures into his calculations of optimal amount of pollution. Assuming actual pollution abatement exhibits a sluggish adjustment process, the theoretical model leads to an empirical AR(1) panel model. We estimate our model using GMM with both ''temporally lagged'' and ''spatially lagged'' instruments. We find that children, people below the poverty line and the smallest minority races are exposed to higher levels of pollution. Our findings show no evidence of environmental inequity against African-Americans or Hispanics, and find that the neighborhoods with a higher percentage of elderly population face signicantly lower levels of pollution from the plants.

Suggested Citation

  • Nadezhda V. Baryshnikova, 2010. "Pollution Abatement and Environmental Equity: A Dynamic Study," School of Economics and Public Policy Working Papers 2010-06, University of Adelaide, School of Economics and Public Policy.
  • Handle: RePEc:adl:wpaper:2010-06
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    1. Manuel Pastor & James L. Sadd & Rachel Morello‐Frosch, 2004. "Waiting to Inhale: The Demographics of Toxic Air Release Facilities in 21st‐Century California," Social Science Quarterly, Southwestern Social Science Association, vol. 85(2), pages 420-440, June.
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    5. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    6. Evan J. Ringquist, 2005. "Assessing evidence of environmental inequities: A meta-analysis," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 24(2), pages 223-247.
    7. 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.
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    Keywords

    pollution abatement; environmental equity; dynamic panel; instrumental variable; fixed effects;
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