Firm Behavior and Pollution in Small Geographies

Dakshina De Silva, Robert McComb, Anita Schiller and Aurélie Slechten

No 266151372, Working Papers from Lancaster University Management School, Economics Department

Abstract: We consider the relationship between the location choices of potentially polluting firms and local income. Unlike previous research in the area of economic justice, we distinguish between pollution potential and actual releases of toxic substances in the locality. We explore the relationship between profit maximizing behavior of potentially polluting firms in their choice of both location and expenditures to influence the likelihood of toxic releases and their expected financial costs. We proxy the expenditures on prudential behavior by observing the co-localization of waste remediation activities. Evidence supports the conclusion that firms behave rationally in managing risk of toxic release.

Keywords: EKC; Environmental Justice; Agglomeration; Entry and Exit (search for similar items in EconPapers)
JEL-codes: L6 Q2 R1 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-env, nep-geo and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Firm behavior and pollution in small geographies (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:lan:wpaper:266151372

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