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Project Description

Summary:  View help for Summary 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.


Scope of Project

Subject Terms:  View help for Subject Terms Air Pollution; environmental regulation; environmental justice; environmental markets
JEL Classification:  View help for JEL Classification
      D63 Equity, Justice, Inequality, and Other Normative Criteria and Measurement
      H23 Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
      Q52 Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
      Q53 Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
      Q56 Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
      Q58 Environmental Economics: Government Policy
Geographic Coverage:  View help for Geographic Coverage United States, Texas, California


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