Template-Type: ReDIF-Paper 1.0
Author-Name: Dakshina De Silva
Author-Name-First: Dakshina
Author-Name-Last: De Silva
Author-Name: Robert McComb
Author-Name-First: Robert
Author-Name-Last: McComb
Author-Name: Anita Schiller
Author-Name-First: Anita
Author-Name-Last: Schiller
Author-Name: Aurelie Slechten
Author-Name-First: Aurelie
Author-Name-Last: Slechten
Title: Firm Behavior and Pollution in Small Geographies
Abstract: 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.
Creation-Date: 2019
File-URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/LancasterWP2019_011.pdf
File-Format: application/pdf
Number: 266151372
Classification-JEL: Q2, L6, R1
Keywords: EKC, Environmental Justice, Agglomeration, Entry and Exit
Handle: RePEc:lan:wpaper:266151372