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

This study examines decisions for the permitting of stationary sources of c riteria air pollutants with respect to the distributional effects among eth nic groups and socio-economic classes. Similar to findings of past studies, a statistically significant correlation exists between minorities (particu larly Hispanics and Native Americans) and the location of new stationary so urces of air pollution in the Denver Metropolitan area. This correlation be tween minority status and pollution may be due to the fact there exists a c orrelation between race and socioeconomic factors such as high unemployment rates, high percentage of housing being rental units and low incomes. Ther efore, a causal multiple regression model was developed to isolate these so cioeconomic 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 pollu tion in the Denver, Colorado Metropolitan area. We hypothesize that firms f ind that certain demographic factors make it less costly in time and effort to site major air pollution point sources. Policy measures based on the as sumption of racial discrimination in the siting process may not be effectiv e in reducing the inequitable distribution of pollution if other socioecono mic characteristics are stronger determinants in the location of polluting industry.