The impact of environmental regulations on the location of firms in the hazardous waste management industry

This paper examines the relationship between environmental regulations and the location decisions of hazardous waste management firms. This industry p rovides a powerful test of the effect of stare environmental regulations on location because environmental regulations significantly affect the cost o f providing waste management. The results indicate that state spending on e nvironmental programs can deter firms, as does potential public opposition. Spending affects the implementation and enforcement of regulations and thu s is very important in firms' location choices. Hazardous waste management firms do not appear to be deterred by the stringency of regulations, but in stead are attracted to more comprehensive policies.