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

Xiao Wang, George Deltas (), Madhu Khanna and Xiang Bi

Journal of the Association of Environmental and Resource Economists, 2021, vol. 8, issue 3, 577 - 616

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.

Date: 2021
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