Where is Pollution Moving? Environmental Markets and Environmental Justice

Joseph Shapiro and Reed Walker

No 28389, NBER Working Papers from National Bureau of Economic Research, Inc

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 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, Hispanic, or with mean household income. This analysis of twelve prominent offset markets suggests that they do not substantially increase or decrease the equity of environmental outcomes.

JEL-codes: H22 Q50 Q52 Q53 (search for similar items in EconPapers)
Date: 2021-01
New Economics Papers: this item is included in nep-ene, nep-env and nep-res
Note: EEE PE
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Citations: View citations in EconPapers (7)

Published as Joseph S. Shapiro & Reed Walker, 2021. "Where Is Pollution Moving? Environmental Markets and Environmental Justice," AEA Papers and Proceedings, American Economic Association, vol. 111, pages 410-414, May.

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Journal Article: Where Is Pollution Moving? Environmental Markets and Environmental Justice (2021)
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