Where Is Pollution Moving? Environmental Markets and Environmental Justice

Joseph Shapiro and Reed Walker

AEA Papers and Proceedings, 2021, vol. 111, 410-14

Abstract: Do US air pollution offset markets disproportionately relocate pollution to or from low-income or minority communities? Concerns about an equal distribution of environmental quality across communities—environmental justice—have growing policy influence. We relate prices and quantities of offset transactions to the demographics of the communities surrounding polluting plants. We find little association of offset prices or offset-induced movements in pollution with the share of a community that is Black or Hispanic or with mean household income. This analysis of 12 prominent offset markets suggests that they do not substantially increase or decrease the equity of environmental outcomes.

JEL-codes: D63 J15 Q53 R12 (search for similar items in EconPapers)
Date: 2021
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Working Paper: Where is Pollution Moving? Environmental Markets and Environmental Justice (2021)
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DOI: 10.1257/pandp.20211004

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