TY - UNPB

T1 - Firm Behavior and Pollution in Small Geographies

AU - De Silva, Dakshina

AU - McComb, Robert

AU - Schiller, Anita

AU - Slechten, Aurelie

PY - 2019/6/6

Y1 - 2019/6/6

N2 - 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.

AB - 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.

KW - EKC

KW - Environmental Justice

KW - Agglomeration

KW - Entry and Exit

M3 - Working paper

T3 - Economics Working Papers Series

BT - Firm Behavior and Pollution in Small Geographies

PB - Lancaster University, Department of Economics

CY - Lancaster

ER -