Race and Pollution Correlation as Predictor of Environmental Injustice

Abstract

Environmental injustice is a theory that claims distributions of toxic, hazardous and dangerous waste facilities are disproportionately located in low-income communities of color. This paper empirically demonstrates an alternative cause of environmental injustice - that low-income minorities are less likely to receive sizeable enough loans to buy a house in a cleaner area. It highlights a significant time in history, from 1999 to 2007, when wealth constraints were eased and loan amounts increased for people with the same income. The results show that minorities increase their demand of environmental goods given an increase in loan amounts, suggesting that people of color care about environmental quality, but, due to wealth constraints, do not have the same opportunities in the housing market.