environmental quality and community characteristics in ontario

Motivation and Literature Research Question Data Methodology Results

Environmental Quality and CommunityCharacteristics in Ontario

Burc KayahanAcadia University

Arian MoghadamBloomsburg University of Pennsylvania

Atlantic DLI Training WorkshopAcadia University

Wolfville, NS12th April 2017

1 / 22

Origin of Environmental Justice Movement in USA• In August 1978, Ward Transformers Company dumped

115 tons of liters of PCB-contaminated transformer oilalong 240 miles of roads in North Carolina.

• The State of North Carolina→ build a landfill to depositthe contaminated soil (6000 truckloads).

• Proposed location: Afton, a rural town in Warren Countythat was 75% African American, with no mayor/citycouncil, among the poorest (ranked 97th out of 100counties) in NC.

2 / 22

Origin of Environmental Justice Movement in USA

Public Response to Landfill:• Local leaders organized protests,

support from civil rights groupsacross the nation.

• 500 people were arrested during 6weeks of marches and streetprotests.

• Lawsuits, public hearings andscientific studies: Compromisereached in 1982, the Statepromised to not expand the landfil.

3 / 22

Environmental Justice Literature in USAExamples from a large body of literature:

• Siting of hazardous waste sites:Bullard(1983), U.S. GAO (1093), UCC(1987)

• Location of large industrial and waste facilities:Anderton et. al. (1994), Boer et. al. (1997), Wolverton(2009, 2011)

• Air pollution concentrations:Morello-Frosch et. al. (2001), Ash and Fetter (2004),Banzhaf et al. (2007)

• Discrimination in regulatory enforcement activities:Hird (1993) Lavelle and Coyle (1992)

• Review articles → Poor and minority neighborhoods havedisproportionate exposure to environmental hazards. (Szaszand Meuser, 1997; Noonan, 2008; Banzhaf 2011)

4 / 22

Health effects of disproportional exposure to pollutants

• Increased cancer incidence:Wolff et. al. (1993), Davis et. al. (1993)

• Cardiovascular, respiratory and other chronic diseases:Burrnett et. al. (1994), English et al. (1999), Maheswaranand Elliott (2003), Aylin et al. (2001), Hu et al. (2008)

• Adverse pregnancy outcomes & childhood cancers:Brender, Chakraborty and Maantay (2010):

5 / 22

Environmental Justice in Action• Policy Response at the National Level:

− Executive Order (12898) signed in 1994“Each federal agency must develop within one year an en-vironmental justice strategy that identifies and addressesdisproportionately high and adverse human health or envi-ronmental effects of its programs, policies, and activities onminority and low-income populations.”

• Grassroots movements:−Community involvement in distribution of permits forrelocation of polluting facilities

− Local activists vs South Coast Air Quality Management,forced settlement over distribution of trades under airpollution trading program in 2004 (Banzhaf, 2011)

6 / 22

Environmental Justice in Action• Policy Response at the National Level:

− Executive Order (12898) signed in 1994“Each federal agency must develop within one year an en-vironmental justice strategy that identifies and addressesdisproportionately high and adverse human health or envi-ronmental effects of its programs, policies, and activities onminority and low-income populations.”

• Grassroots movements:−Community involvement in distribution of permits forrelocation of polluting facilities

− Local activists vs South Coast Air Quality Management,forced settlement over distribution of trades under airpollution trading program in 2004 (Banzhaf, 2011)

6 / 22

Empirical Evidence & Potential HypothesesHamilton(1995) & Banzhaf (2011): Five broad categories

1. Discrimination:i. Pure discrimination → Firms strategically target neighbour-

hoods, based on the affluency, minority status and politicalpower (Hamilton, 1993)

ii. Firm’s location decision is based on economic factors →spatial correlation with demographic compositionLand value, low wages, transportation networks, proximity tosupply chain (Wolverton, 2011)

iii. Government→Heterogeneity in enforcement of environmen-tal standards− Lavelle and Coyle (1992): Lower penalties against pollu-tion law violators in minority areas, longer reaction time toaddress hazards in minority communities− Squeaky wheel gets the grease (Hamilton & Viscusi, 1999):Organized, connected and politically powerful neighborhoods

7 / 22

Explanations (continued)

2. Market Forces: Housing Market and Public Goods

iv. Minority move-in hypothesis (Been 1993, 1997)− Environmental quality vs housing affordability tradeoff(Coming to the nuisance)− Tiebout hypotesis (1956)→ Voting with feet− Testing & Empirical evidence (Banzhaf et. al., 2011)− Implications on ‘’Environmental Gentrification”

v. Coase Theorem (1960)→ Compensation for pollution− Fees collected by neighborhoods near landfills (Jenkinset. al., 2004)− Bargaining between polluting firms vs. communities andefficient allocation of pollution− Income inequity→ Environmental inequality

8 / 22

Explanations (continued)

2. Market Forces: Housing Market and Public Goods

iv. Minority move-in hypothesis (Been 1993, 1997)− Environmental quality vs housing affordability tradeoff(Coming to the nuisance)− Tiebout hypotesis (1956)→ Voting with feet− Testing & Empirical evidence (Banzhaf et. al., 2011)− Implications on ‘’Environmental Gentrification”

v. Coase Theorem (1960)→ Compensation for pollution− Fees collected by neighborhoods near landfills (Jenkinset. al., 2004)− Bargaining between polluting firms vs. communities andefficient allocation of pollution− Income inequity→ Environmental inequality

8 / 22

Policy Implications: Why should we care?

1. Differences in optimal policy response:Intervention (Revise Zoning permissions) vs CompleteInformation

2. Environmetal Gentrification:Adverse effects of pollution clean up on low-incomeresidents (Atkinson, 2002; Sieg et. al., 2004; Eckerd,2010)

9 / 22

Canadian Literature1. Eyles, Cole &Reader (1997): Investigate environmental

equity at the county level in Ontario using 1991 Census− Dwell. value, income, population & manuf. employment

2. Jerrett et. al. (2001): Whether racial gradients exist in airpollution across Hamilton− Similar findings to Eyles et. al. (1997), Sensitivity tospatial autocorrelation

3. Buzzelli and Jerrett (2007): Exposure to traffic-related airpollution across neighbourhoods in Toronto− Neighborhoods with lone-parents, low education, high-status occupations & high dwell. values are more exposed.

4. Buzzelli (2008): Development & Adoption of an Environ-mental Justice Policy

10 / 22

Research Questions

1. Investigate the relationship between pollutant releases toair and community characteristics in Ontario

• Probability of being affected by pollution & Demographics• Number of polluting facilities & Demographics (Primary)• Levels of Emissions (by toxicity) & Demographics

2. Which hypothesis is more relevant for explaining theobserved correlations in the sample?

11 / 22

Data Sources

Our sample makes use of two distinct datasets:

1. Census - Neighborhood characteristics (Ontario)• Census years: 1996, 2001 and 2006• Census unit: Forward Sortation Area (FSA)

i. First three digits of the postal codeii. Population: Average 22,600 [Min:300 Max:84,000]iii. Area: 134km2 [Min:0.24 Max:5,800]

• Variables considered:a) Population: CMA/CA, Pop. density, Migrants, Born out of

provinceb) Demographics: Married, # of Children, Aboriginals,

Immigrants, University. grads,c) Housing: New dwellings, Detached houses, Dwelling valued) Economic: HH Income, Unemployment, Manufacturing

employment

12 / 22

Data Sources

Our sample makes use of two distinct datasets:

1. Census - Neighborhood characteristics (Ontario)• Census years: 1996, 2001 and 2006• Census unit: Forward Sortation Area (FSA)

i. First three digits of the postal codeii. Population: Average 22,600 [Min:300 Max:84,000]iii. Area: 134km2 [Min:0.24 Max:5,800]

• Variables considered:a) Population: CMA/CA, Pop. density, Migrants, Born out of

provinceb) Demographics: Married, # of Children, Aboriginals,

Immigrants, University. grads,c) Housing: New dwellings, Detached houses, Dwelling valued) Economic: HH Income, Unemployment, Manufacturing

employment

12 / 22

Data Sources

2. The National Pollutant Release Inventory (NPRI)

−“Canada’s legislated inventory of pollutant releases (toair, water and land), disposals and transfers for recycling.”

− Facility has to report if one or more NPRI substanceswas manufactured, processed or otherwise used at thefacility, and it employs more than 10 full-time employees

− Annual data available since 1993

− Toxicity levels→ EPA (1986, 2011)• (A) Human carcinogen• (B) Probable human carcinogen• (C) Possible human carcinogen• (D) Not classified as human carcinogen• (N) None of the above

13 / 22

Figure 1: Polluting Facilities in Ontario, 2006

14 / 22

Figure 2: 50% Areal Containment - Excluded Facility

15 / 22

Figure 3: 50% Areal Containment - Excluded Facility 2

16 / 22

Figure 4: 50% Areal Containment - Neighbourhood

17 / 22

Figure 5: 50% Areal Containment - Neighbourhood

18 / 22

Figure 6: Boundary Changes Across Census Years

19 / 22

Figure 7: Redistribution of pollution among neighboring FSAs

20 / 22

Summary of Results

Findings:• Firms’ siting decisions based on economic factors:− Population density & metropolitan areas (negative)− Dwelling values and # of detached houses (negative)− Manufacturing employment (positive)

• Evidence toward minority move-in hypothesis:− % of married households and #of children (negative)− % of movers and % of university graduates (negative)− HH income (positive) and unemployment rate (negative)

• However, some evidence towards strategic behavior of firms:− % of immigrants and % born out of province (positive)

21 / 22

Summary of Results

21 / 22

Summary of Results

21 / 22

Summary of Results

21 / 22

Summary of Results

Overall conclusion:• Results suggest that community characteristics are corre-

lated with pollution.• Observed correlations do not point out to pure discrimina-

tion in terms of location, however, there is some evidencetowards strategic behavior in polluting behavior.

• Our findings are consistent with the ones found in the U.S.and Canadian literature.

22 / 22

environmental quality and community characteristics in ontario

Documents