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Papers Containing Keywords(s): 'estimates pollution'

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  • Working Paper

    Income, Wealth, and Environmental Inequality in the United States

    October 2024

    Working Paper Number:

    CES-24-57

    This paper explores the relationships between air pollution, income, wealth, and race by combining administrative data from U.S. tax returns between 1979'2016, various measures of air pollution, and sociodemographic information from linked survey and administrative data. In the first year of our data, the relationship between income and ambient pollution levels nationally is approximately zero for both non-Hispanic White and Black individuals. However, at every single percentile of the national income distribution, Black individuals are exposed to, on average, higher levels of pollution than White individuals. By 2016, the relationship between income and air pollution had steepened, primarily for Black individuals, driven by changes in where rich and poor Black individuals live. We utilize quasi-random shocks to income to examine the causal effect of changes in income and wealth on pollution exposure over a five year horizon, finding that these income'pollution elasticities map closely to the values implied by our descriptive patterns. We calculate that Black-White differences in income can explain ~10 percent of the observed gap in air pollution levels in 2016.
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  • Working Paper

    The Changing Nature of Pollution, Income, and Environmental Inequality in the United States

    January 2024

    Working Paper Number:

    CES-24-04

    This paper uses administrative tax records linked to Census demographic data and high-resolution measures of fine small particulate (PM2.5) exposure to study the evolution of the Black-White pollution exposure gap over the past 40 years. In doing so, we focus on the various ways in which income may have contributed to these changes using a statistical decomposition. We decompose the overall change in the Black-White PM2.5 exposure gap into (1) components that stem from rank-preserving compression in the overall pollution distribution and (2) changes that stem from a reordering of Black and White households within the pollution distribution. We find a significant narrowing of the Black-White PM2.5 exposure gap over this time period that is overwhelmingly driven by rank-preserving changes rather than positional changes. However, the relative positions of Black and White households at the upper end of the pollution distribution have meaningfully shifted in the most recent years.
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  • Working Paper

    Longitudinal Environmental Inequality and Environmental Gentrification: Who Gains From Cleaner Air?

    May 2017

    Authors: John Voorheis

    Working Paper Number:

    carra-2017-04

    A vast empirical literature has convincingly shown that there is pervasive cross-sectional inequality in exposure to environmental hazards. However, less is known about how these inequalities have been evolving over time. I fill this gap by creating a new dataset, which combines satellite data on ground-level concentrations of fine particulate matter with linked administrative and survey data. This linked dataset allows me to measure individual pollution exposure for over 100 million individuals in each year between 2000 and 2014, a period of time has seen substantial improvements in average air quality. This rich dataset can then be used to analyze longitudinal dimensions of environmental inequality by examining the distribution of changes in individual pollution exposure that underlie these aggregate improvements. I confirm previous findings that cross-sectional environmental inequality has been on the decline, but I argue that this may miss longitudinal patterns in exposure that are consistent with environmental gentrification. I find that advantaged individuals at the beginning of the sample experience larger pollution exposure reductions than do initially disadvantaged individuals.
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  • Working Paper

    OFFSHORING POLLUTION WHILE OFFSHORING PRODUCTION*

    January 2016

    Working Paper Number:

    CES-16-09R

    We examine the role of firm strategy in the global combat against pollution. We find that U.S. plants release less toxic emissions when their parent firm imports more from low-wage countries (LWCs). Consistent with the Pollution Haven Hypothesis, goods imported by U.S. firms from LWCs are in more pollution-intensive industries; U.S. plants shift production to less pollution-intensive industries, produce less waste, and spend less on pollution abatement when their parent imports more from LWCs. The negative impact of LWC imports on emissions is stronger for U.S. plants located in counties with greater institutional pressure for environmental performance, but weaker for more-capable U.S. plants and firms. These results highlight the role of local institutions and firm capability in explaining firms' choice of offshoring and environmental strategy.
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  • Working Paper

    Do Environmental Regulations Disproportionately Affect Small Businesses? Evidence from the Pollution Abatement Costs and Expenditures Survey

    September 2012

    Working Paper Number:

    CES-12-25R

    It remains an open question whether the impact of environmental regulations differs by the size of the business. Such differences might be expected because of statutory, enforcement, and/or compliance asymmetries. Here, we consider the net effect of these three asymmetries, by estimating the relationship between plant size and pollution abatement expenditures, using establishment-level data on U.S. manufacturers from the Census Bureau's Pollution Abatement Costs and Expenditures (PACE) surveys of 1974-1982, 1984-1986, 1988-1994, 1999, and 2005, combined with data from the Annual Survey of Manufactures and Census of Manufactures. We model establishments' PAOC intensity - that is, their pollution abatement operating costs per unit of economic activity - as a function of establishment size, industry, and year. Our results show that PAOC intensity increases with establishment size. We also find that larger firms spend more per unit of output than do smaller firms.
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  • Working Paper

    The Effects of Environmental Regulation on the Competiveness of U.S. Manufacturing

    January 2011

    Working Paper Number:

    CES-11-03

    Whether and to what extent environmental regulations influence the competitiveness of firms remains a hotly debated issue. Using detailed production data from tens of thousands of U.S. manufacturing plants drawn from Annual Survey of Manufactures, we estimate the effects of environmental regulations'captured by the Clean Air Act Amendments' division of counties into pollutant-specific nonattainment and attainment categories'on manufacturing plants' total factor productivity (TFP) levels. We find that among surviving polluting plants, a nonattainment designation is associated with a roughly 2.6 percent decline in TFP. The regulations governing ozone have particularly discernable effects on productivity, though effects are also seen among particulates and sulfur dioxide emitters. Carbon monoxide nonattainment, on the other hand, appears to increase measured TFP, though this appears to be concentrated among refineries. When we apply corrections for two likely sources of positive bias in these estimates (price mismeasurement and sample selection on survival), we estimate that the total TFP loss for polluting plants in nonattaining counties is 4.8 percent. This corresponds to an annual lost output in the manufacturing sector of roughly $14.7 billion in 1987 dollars ($24.4 billion in 2009 dollars). These costs have important implications for both the intensity and location of firm expansions.
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  • Working Paper

    On Spatial Heterogeneity in Environmental Compliance Costs

    September 2009

    Authors: Randy Becker

    Working Paper Number:

    CES-09-25R

    This paper examines the extent of variation in regulatory stringency below the state level, using establishment-level data from the U.S. Census Bureau's Pollution Abatement Costs and Expenditures (PACE) survey to estimate a county-level index of environmental compliance costs (ECC). County-level variation is found to explain 11-18 times more of the variation in ECC than state-level variation alone, and the range of ECC within a state is often large. At least 34% of U.S. counties have ECC that are statistically different from their states'. Results suggest that important spatial variation is lost in state-level studies of environmental regulation.
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  • Working Paper

    Issues and Challenges in Measuring Environmental Expenditures by U.S. Manufacturing: The Redevelopment of the PACE Survey

    July 2007

    Working Paper Number:

    CES-07-20

    The Pollution Abatement Costs and Expenditures (PACE) survey is the most comprehensive source of information on U.S. manufacturing's capital expenditures and operating costs associated with pollution abatement. In 2003, the U.S. Environmental Protection Agency began a significant initiative to redevelop the survey, guided by the advice of a multi-disciplinary workgroup consisting of economists, engineers, survey design experts, and experienced data users, in addition to incorporating feedback from key manufacturing industries. This paper describes some of these redevelopment efforts. Issues discussed include the approach to developing the new survey instrument, methods used to evaluate (and improve) its performance, innovations in sampling, and the special development and role of outside expertise. The completely redesigned PACE survey was first administered in early 2006.
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  • Working Paper

    Manufacturing Plant Location: Does State Pollution Regulation Matter?

    July 1997

    Authors: Wayne B Gray

    Working Paper Number:

    CES-97-08

    This paper tests whether differences across states in pollution regulation affect the location of manufacturing activity in the U.S. Plant-level data from the Census Bureau's Longitudinal Research Database is used to identify new plant births in each state over the 1963-1987 period. This is combined with several measures of state regulatory intensity, including business pollution abatement spending, regulatory enforcement activity, congressional pro-environment voting, and an index of state environmental laws. A significant connection is found: states with more stringent environmental regulation have fewer new manufacturing plants. These results persist across a variety of econometric specifications, and the strongest regulatory coefficients are similar in magnitude to thos4e on other factors expected to influence location, such as unionization rates. However, a subsample of high-pollution industries, which might have been expected to show much larger impacts, gets similar coefficients. This raises the possibility that differences between states other than environmental regulation might be influencing the results.
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  • Working Paper

    The Silver Lining Of Rust Belt Manufacturing Decline: Killing Off Pollution Externalities

    June 1997

    Authors: Matthew E Kahn

    Working Paper Number:

    CES-97-07

    This paper expoloits a unique merger of air quality and county manufacturing data to quantify manufacturing's pollution externality by industry. By linking pollution to local production, I estimate cross-sectional pollution production regressions. Rust Belt cities that were endowed with the largest concentrations of the dirtiest industries experience reduced pollution externalities. I estimate that Gary, Indiana adn Pittsburgh, Pennsylvania experienced substantial pollution declines as local primary metals activity declined in the 1970s and 1980s.
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