Economics

The environmental performance of polluting plants: A spatial analysis

Document Type

Article

Abstract

This paper uses plant-level EPA and Census data to examine spatial factors affecting environmental performance, as measured by air pollutant emissions and regulatory compliance. We find significant effects for compliance, but not for emissions. Compliance is positively spatially correlated, partly explained by spatial correlations in observed plant characteristics, suggesting influences of industry agglomeration. The use of spatial econometric methods shows only small effects of spatially lagged compliance status, and does not greatly change the estimated contributions of other spatially explicit factors. Regulatory activity has the expected effect of increasing environmental performance, both at the inspected plant and at neighboring plants, but only for plants in the same state, demonstrating the importance of jurisdictional boundaries. © Blackwell Publishing, Inc. 2007.

Publication Title

Journal of Regional Science

Publication Date

2-2007

Volume

47

Issue

1

First Page

63

Last Page

84

ISSN

0022-4146

DOI

10.1111/j.1467-9787.2007.00500.x

Keywords

regulatory compliance

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