An investigation into the presence and causes of environmental inequity in Denver, Colorado

Abstract This study examines decisions for the permitting of stationary sources of criteria air pollutants with respect to the distributional effects among ethnic groups and socio-economic classes. Similar to findings of past studies, a statistically significant correlation exists between minorities (particularly Hispanics and Native Americans) and the location of new stationary sources of air pollution in the Denver Metropolitan area. This correlation between minority status and pollution may be due to the fact there exists a correlation between race and socioeconomic factors such as high unemployment rates, high percentage of housing being rental units and low incomes. Therefore, a causal multiple regression model was developed to isolate these socioeconomic factors at the time of the siting decision from minority status of the population. Several of these socioeconomic factors appear to be the determining factors in the location of new stationary sources of air pollution in the Denver, Colorado Metropolitan area. We hypothesize that firms find that certain demographic factors make it less costly in time and effort to site major air pollution point sources. Policy measures based on the assumption of racial discrimination in the siting process may not be effective in reducing the inequitable distribution of pollution if other socioeconomic characteristics are stronger determinants in the location of polluting industry.