Working Paper: Disproportionate Environmental Risks: An Analysis of Chemical Facilities and Accidents in the U.S.
Paper Number: 2024-08
Document Date: 10/2024
Author(s): Dennis Guignet, Robin R. Jenkins, Ian Berry and Margaret Sugg
Subject Area(s): Air Pollution, Industrial Sources, Environmental Policy, Distributional Effects
JEL Classification:
D63, Q52, Q53, Q56, Q58
Keywords: accident, chemical, environmental justice, equity, toxic, Risk Management Plan, RMP
Abstract: A key objective of the environmental justice movement in the United States is to identify and address situations where environmental risks and harms are shouldered disproportionately by historically underserved populations (based on race, ethnicity, and low-income status). This study examines a unique dataset of chemical facilities that use extremely hazardous substances, and subsequent chemical accidents involving fires, explosions and/or toxic vapors. Using nationwide data on the U.S. Environmental Protection Agency’s Risk Management Plan (RMP) program, we examine the proportions of underserved populations living near these facilities and accidents, compared to populations elsewhere across the broader contiguous U.S. We find that the proportions of residents who are Black, Hispanic, Asian, and living in poverty are greater in communities near these facilities. We find even larger percentages of underserved groups living near facilities where chemical accidents occur. Similar disparities are found when examining the spatial clustering of facilities and accidents. Finally, we find that some of these disparities are greater in communities where the state governments are in control, rather than where the federal government oversees the RMP program. These findings can inform policies to address disparate environmental risks and harms.
This paper is part of the Environmental Economics Working Paper Series.