Firm Behavior and Pollution in Small Geographies

De Silva, Dakshina and McComb, Robert and Schiller, Anita and Slechten, Aurelie (2019) Firm Behavior and Pollution in Small Geographies. Working Paper. Lancaster University, Department of Economics, Lancaster.

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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.

Item Type: Monograph (Working Paper)
Subjects:
Departments: Lancaster University Management School > Economics
ID Code: 134419
Deposited By: ep_importer_pure
Deposited On: 22 Jun 2019 01:24
Refereed?: No
Published?: Published
Last Modified: 25 Feb 2020 00:28
URI: https://eprints.lancs.ac.uk/id/eprint/134419

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